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Amazon is spreading wings! Ecomm giant plans to take on FedEx, UPS with new delivery service

Amazon in piloting 'Seller Flex' in parts of US. The service is expected to be rolled out next year.

October 06, 2017 / 10:33 AM IST
People work during Black Friday deals week at an Amazon fulfillment centre in Madrid, Spain, November 24, 2015. Spain's economy grew faster than most others in the euro zone from July to September, but turning the recovery into votes in the national election next month still looks like a struggle for Prime Minister Mariano Rajoy. Picture taken November 24, 2015.  REUTERS/Andrea Comas - GF20000074365

People work during Black Friday deals week at an Amazon fulfillment centre in Madrid, Spain, November 24, 2015. Spain's economy grew faster than most others in the euro zone from July to September, but turning the recovery into votes in the national election next month still looks like a struggle for Prime Minister Mariano Rajoy. Picture taken November 24, 2015. REUTERS/Andrea Comas - GF20000074365

E-commerce giant Amazon is planning to roll out its own full-fledged delivery service to take on its own partners such as FedEx and United Parcel Service (UPS), according to a report by Bloomberg.

Amazon is currently testing the new delivery service which is intended to make more products available for free two-day delivery. The plan is also likely to help Amazon relieve overcrowded warehouses. The pilot project had started in India almost two years ago.

The project titled 'Seller Flex' started its trial service this year in come United States on the western coast and is expected to be rolled out in 2018.

The Seattle-based company will oversee pick-up of packages from merchants and will deliver them to customers’ homes. The process is currently being managed by its partners FedEx and UPS.

Handling of delivery would help Amazon save money and make the operation more flexible.

Earlier this year, Amazon had announced it plans to set up an air cargo hub in North Kentucky, United States which would create 2,000 jobs.

In 2016, the company started leasing 40 cargo aircraft and a year after introducing a fleet of more than a thousand tractor-trailers to move products between its warehouses. It had also enabled individuals to sign up as delivery workers.

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first published: Oct 6, 2017 10:29 am

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