Amazon Opens Logistics Network to Capture B2B Market, FedEx and UPS Stock Plunge
Amazon announced today that it will open its vast logistics network to other companies through its new "Amazon Supply Chain Services (ASCS)," causing shares of UPS and FedEx to fall by over 9%. This move positions Amazon to capture the B2B freight market and intensify competition in the logistics industry.
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- 📰 Published: May 5, 2026 at 16:21
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NEW YORK (CNA) — Amazon.com Inc. announced today that it will allow other businesses to use its vast logistics network, covering everything from raw material storage to final product delivery, causing shares of United Parcel Service Inc. (UPS) and FedEx Corp. to plunge more than 9%. The new service, named "Amazon Supply Chain Services (ASCS)," will allow retailers, healthcare providers, and manufacturers to pay to use Amazon's supply chain network across ocean, road, rail, and air, handling products from factory to consumer. Amazon owns a fleet of over a hundred cargo planes, a scale second only to FedEx and UPS, and also possesses a massive network of warehouses and fulfillment centers. This entry into the US logistics industry is expected to secure a foothold in the market and could lead to more intense competition for existing companies in terms of price and delivery speed. Following the news, both FedEx and UPS shares fell by over 9%, while Amazon's stock rose by nearly 1%. Amazon stated that Procter & Gamble, 3M, and American Eagle Outfitters have already signed up to use the service. Amazon is targeting the "business-to-business" (B2B) freight market, which is a highly competitive and profitable market for logistics providers because, compared to individual consumer packages, B2B deliveries are generally more intensive, more predictable, and have lower service costs. Parth Talsania, CEO of Equisights Research, commented that this is "Amazon's attempt to turn logistics from a cost burden into an infrastructure product." Similar to Amazon Web Services (AWS), which Amazon launched in 2006 to optimize its own IT infrastructure but later grew to become the world's largest cloud service provider. (Compiler: Chang Ming-hsuan) 1150505. Stand with facts, every sponsorship you make is a force for protecting press freedom. Download CNA's "First-hand News" APP to stay updated with the latest news. The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.