Amazon, a US-based eCommerce Giant has reportedly dropped a plan for starting a delivery service, Namely Amazon Shipping, on par with International Delivery Services as FedEx and UPS, reported by the London-based International News Organization Reuters.
According to the report published in the Wall Street Journal, the online retail company of US told the media and customers that the company is dropping the idea for Amazon Shipping starting in June.
The reason Amazon has told its customers behind dropping the idea of Amazon Shipping is that needs a large flux of people and capacity to runs its delivery operations in different cities across USA.
Amazon Spokesman has emailed the Reuters to confirm the company’s decision for suspension of delivery services by saying “We regularly look at a variety of factors across Amazon to make sure we’re set up in the right way to best serve our customers.”
It is important to mention that Amazon Shipping only handles Amazon and non-Amazon marketplace delivery packages and is currently available in different selected cities of USA, including the Los Angeles.
The company is struggling with the high delivery demand in the United States, as majority of people prefer to stay and work from home to spread the Coronavirus pandemic that has struck different countries across the Globe.
Amazon Shipping was facing difficulties to deliver the packages to customers in a given time frame of one or two days, as it has promised prior the COVID-19 Pandemic.
The Founder of Consultancy Shipware Trevor Outman has predicted that the closure of the delivery company will help the eCommerce Giant to shift its focus on its core delivery operations.
It is pertinent to mention that Amazon had said back in March that it would hire more than 100,000 warehouse and delivery staff across the United States to meet the growing demand of customers.
In the meanwhile, the shares of FedEx and UPS rose up to 2% in trading.