Amazon to roll out shipping service in Los Angeles


Amazon is preparing to launch its own shipping service, "Shipping with Amazon," or SWA, which will directly compete with FedEx and UPS, The Wall Street Journal reports.
SWA will roll out exclusively in Los Angeles in the coming weeks after a pilot program that began more than a year ago, and will service third-party businesses that sell products through Amazon's website. In the long term, Amazon plans to expand SWA to other cities and open it up to outside businesses, too.
The company already delivers some of its own orders in almost 40 U.S. cities, and SWA's model will involve picking up business' packages when convenient, a structure that would "undercut UPS and FedEx on pricing," the Journal writes:
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
For its "Shipping with Amazon" option, the online retail giant is expected to be able to offer lower prices than UPS and FedEx because it already delivers some of its own packages — any extra space it can fill in its trucks with additional deliveries is considered added revenue, according to people familiar with the company's thinking. [The Wall Street Journal]
The long-term goal "is to take a cut of all economic activity," business analyst Ben Thompson told The Verge — which just goes to show that Amazon can't seem to stop being creepy.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeva Lange was the executive editor at TheWeek.com. She formerly served as The Week's deputy editor and culture critic. She is also a contributor to Screen Slate, and her writing has appeared in The New York Daily News, The Awl, Vice, and Gothamist, among other publications. Jeva lives in New York City. Follow her on Twitter.
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine