Amazon Is Testing Its Own Delivery Service, Report Says

What's This?

Amazon employees organize packages at a Fulfillment Center in Phoenix, Arizona.

Image: Ross D. Franklin/Associated Press

By Karissa Bell2014-04-24 23:12:21 UTC

Amazon is reportedly in the early phases of testing a new delivery service that would reduce the company's reliance on UPS and FedEx.

The company has been testing the service, supposedly called "Last Mile," in New York, Los Angeles and San Francisco since late last year, The Wall Street Journal report says.

See also: What the World’s Biggest Websites Looked Like at Launch

The exact logistics of the delivery service, or when it might roll out in other cities, aren't yet clear but it focuses on the so-called "last mile" of deliveries, the part that ends up at your doorstep and is typically handled by large carriers like UPS or the USPS.

Packages shipped through the network are reportedly marked "AMZL" and "AMZN_US," Amazon's internal codes for packages slated to be delivered through the service.

The WSJ report pointed to recent job listings, posted on Amazon's website, that suggest the company is attempting to directly compete with FedEx and UPS.

Amazon is growing at a faster speed than UPS and FedEx, who are responsible for shipping the majority of our packages. At this rate Amazon cannot continue to rely solely on the solutions provided through traditional logistics providers. To do so will limit our growth, increase costs and impede innovation in delivery capabilities. Last Mile is the solution to this. It is a program which is going to revolutionize how shipments are delivered to millions of customers.

Thursday's report is the latest in Amazon's plans to make its delivery services faster and more competitive. The company has already rolled out a similar delivery service in the UK, which Amazon CEO Jeff Bezos highlighted in a letter to shareholders earlier this year.

"We’ve created our own fast, last-mile delivery networks in the UK where commercial carriers couldn’t support our peak volumes," he wrote.

In December, Bezos unveiled plans for Amazon Prime Air, expected to debut in 2015, a service that will use flying robotic drones to deliver packages within minutes of orders being placed.

Have something to add to this story? Share it in the comments.

Topics: amazon, Business, delivery, FedEx, Marketing, UPS