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Amazon.com Inc. will halt a delivery service for non-Amazon packages, according to people familiar with the matter, as it re-evaluates the nascent offering that competes directly with FedEx Corp. FDX, -2.57% and United Parcel Service Inc. UPS, -2.89%
Amazon AMZN, +0.70% told shippers the service, known as Amazon Shipping, will be paused starting in June. It was available in just a handful of U.S. cities.
Under the program, Amazon drivers would pick up packages from businesses and deliver them to consumers, rather than ship orders from Amazon warehouses.
“We understand this is a change to your business, and we did not take this decision lightly,” Amazon said in a note to shippers reviewed by The Wall Street Journal. “We will work with you over the next several weeks so there is as little disruption to your business as possible.”
Amazon is suspending the service because it needs its people and capacity to handle a surge in its own customers’ orders, according to a person familiar with the matter. The company has said it wants to hire 100,000 warehouse workers and is focusing on shipping essential items during the coronavirus outbreak.
