UPS and FedEx shares slide after Amazon opens supply-chain network
Updated
Updated · The Wall Street Journal · May 4
UPS and FedEx shares slide after Amazon opens supply-chain network
14 articles · Updated · The Wall Street Journal · May 4
In Monday morning trading, UPS fell about 9% and FedEx more than 7%, putting both among the S&P 500's five worst performers, while Amazon rose over 1%.
The move followed Amazon's decision to offer its global supply-chain network to all businesses, expanding its push into third-party logistics and intensifying competition for established delivery groups.
Amazon has already overtaken UPS and FedEx as the largest US parcel carrier by volume, and the new offering signals a broader challenge in global logistics services.
Can UPS and FedEx survive by targeting niche logistics while Amazon captures the massive last-mile delivery market?
As Amazon's new service mirrors AWS, is it building an unchallengeable monopoly over the infrastructure of global commerce?
Amazon Captures Over 25% of U.S. Parcel Market in 2026, Disrupting FedEx and UPS
Overview
In early 2026, Amazon launched its Supply Chain Services, integrating ocean, air, ground, and rail freight into a unified platform for businesses. This move, backed by a massive $200 billion investment and advanced AI technology, redefined delivery speed and customer expectations, capturing over 25% of U.S. parcel volume. The shift pressured incumbents like FedEx and UPS, who faced shrinking markets and rising costs, prompting FedEx to consolidate networks and UPS to focus on healthcare and SMB niches. Meanwhile, smaller carriers innovated amid rising fees and complexity, causing a shakeout. The logistics industry now faces a fierce battle over market share, profitability, and technology, driven by Amazon's scale and innovation.