Amazon Logistics Expansion Sparks Over 9% FedEx, UPS Share Declines
AMZN•Amazon is opening its full freight, distribution, fulfillment and parcel shipping capabilities—combining FBA, AWD and AGL—under its new Amazon Supply Chain Services unit available to all businesses. Shares of FedEx, UPS and DHL plunged over 9% following Tuesday’s launch, highlighting market concerns for incumbents.
1. Amazon Launches ASCS
Amazon combined its Fulfillment by Amazon, Amazon Warehousing and Distribution and Amazon Global Logistics into a new Amazon Supply Chain Services unit, opening freight, distribution, fulfillment and parcel shipping services, along with inventory replenishment, demand forecasting and customs clearance, to all businesses.
2. Competitor Share Declines
Shares of major logistics providers reacted sharply, with FedEx slipping 9%, UPS down 10%, DHL off 9%, C.H. Robinson falling 9%, GXO tumbling 17% and Kuehne+Nagel declining 7.5% in the wake of the announcement.
3. Strategic Market Context
This move leverages Amazon’s existing logistics infrastructure built for e-commerce, taps into a 3PL market used by 94% of Fortune 500 companies and positions Amazon to replicate AWS’s growth trajectory within supply chain services.
