Amazon Suspend Delivery Service
Amazon is suspending the service because it needs people and capacity to handle a surge in its own customers’ orders, the Journal reported, citing sources.
April 7 (Reuters) – Amazon.com Inc has put on hold a new delivery service that competes with UPS and FedEx, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
The company said https://www.reuters.com/article/us-healthcare-coronavirus-amazon-com/amazon-to-hire-100000-workers-as-online-orders-surge-on-virus-worries-idUSKBN2133LB in March it would hire 100,000 warehouse and delivery workers in the United States to deal with a surge in online orders.
Amazon told shippers the service, known as Amazon Shipping, will be paused starting in June, the report added https://www.wsj.com/articles/amazon-to-suspend-delivery-service-that-competes-with-ups-fedex-11586296112?mod=searchresults&page=1&pos=2.
Amazon Pause Delivery
Amazon is ‘pausing’ its own shipping service that it was beta-testing in the US — read the memo it just sent sellers (AMZN) https://t.co/CurA2QNw4k #smallbusiness #education pic.twitter.com/G7x7I11iyD
— HP Targeting, Inc. (@HPTarget) April 7, 2020
The service was rolled out to deliver non-Amazon and Amazon marketplace packages.
UPS and FedEx shares rose 2% in extended trading on the news. (Reporting by Ayanti Bera in Bengaluru; Editing by Anil D’Silva)
Amazon Suspended Its Two-Day Shipping
As the coronavirus sparked doomsday style shopping in grocery stores across the nation, paying Amazon Prime shoppers believed they could all their supplies from the online retailer and within the regular guaranteed two-day delivery option. However, on March 25, such a luxury was no longer an option due to the COVID-19 outbreak, and the subsequent spike in shoppers choosing to purchase items online that they previously would’ve purchased at their local markets.
Amazon said in a statement: “To serve our customers in need while also helping to ensure the safety of our associates, we’ve changed our logistics, transportation, supply chain, purchasing, and third-party seller processes to prioritize stocking and delivering items that are a higher priority for our customers. This has resulted in some of our delivery promises being longer than usual.”
To help boost service, Amazon also announced they were planning to hire 100,000 full and part-time workers to help fulfill the delivery orders across America. For employees working through coronavirus in April, the online retailer said it would their wages by $2 an hour.
On March 16, Amazon announced: “As the COVID-19 pandemic continues, Amazon and our network of partners are helping communities around the world in a way that very few can—delivering critical supplies directly to the doorsteps of people who need them. Getting a priority item to your doorstep is vital as communities practice social-distancing, particularly for the elderly and others with underlying health issues. We are seeing a significant increase in demand, which means our labor needs are unprecedented for this time of year.”