UPS and FedEx stocks sink after Amazon expands logistics services
Updated
Updated · CNBC · May 4
UPS and FedEx stocks sink after Amazon expands logistics services
15 articles · Updated · CNBC · May 4
Both companies were down 10% in midday trading as Amazon opened its supply-chain network to outside businesses and said Procter & Gamble, 3M, Lands' End and American Eagle had signed up.
The new Amazon Supply Chain Services lets companies across industries move and deliver products and raw materials using Amazon's logistics network, while Amazon shares were largely unchanged.
The move deepens Amazon's push into services and positions it more directly against UPS and FedEx, backed by more than 100 cargo planes and a vast warehouse network.
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.