Amazon opens ASCS logistics network as UPS plunges 10% and FedEx falls 9%
Amazon has opened its logistics network to any business through Amazon Supply Chain Services (ASCS), handling ocean shipping, warehousing and seven-day home delivery for clients including Procter & Gamble, 3M, Lands' End and American Eagle. On launch, UPS shares fell 10%, FedEx dropped 9% and Amazon stock rose about 1%.
1. Service Launch and Capabilities
Amazon Supply Chain Services (ASCS) launched Monday, opening the company's global shipping and delivery network to any business. The service covers end-to-end logistics, including ocean freight, storage in Amazon's warehouses and seven-day delivery to customers' doors.
2. Early Client Sign-Ups
Major manufacturers and retailers have already signed up for ASCS, with Procter & Gamble, 3M, Lands' End and American Eagle among the initial clients. The move extends Amazon's logistics capabilities beyond its marketplace sellers, mirroring the successful AWS rollout.
3. Competitor and Market Reaction
Within hours of the announcement, UPS shares fell 10% and FedEx dropped 9% as investors weighed the competitive threat. Amazon stock gained approximately 1%, reflecting market confidence in the new revenue stream and potential margin benefits.