Shares of United Parcel Service Inc and FedEx Corp fell on Thursday after a report that Amazon.com Inc was testing its own delivery service, potentially encroaching on the territory of the package delivery companies.
Amazon will oversee pickup of packages from warehouses of third-party merchants selling goods on its website and their delivery to customers’ homes – a function often handled by longtime partners UPS and FedEx, according to sources cited by Bloomberg.
UPS’ shares fell as much as 2 percent to $116.52, while those of FedEx dropped 1.6 percent to $217.77.