Amazon Taking Direct Aim at UPS and FedEx With New Logistics Expansion

What Happened?

In a statement made Monday, Amazon said it will begin to offer its logistics to outside companies, allowing businesses to store, move, and deliver products using its system. Amazon Supply Service will cover the entire process, in which companies will be able to move goods from factories through warehouses and out to customers using Amazon’s trucks, planes, and sorting hubs. However, it will not be limited to just online orders, as the logistics system will be available to inventory headed to stores, distributors, or direct buyers themselves.

Large companies have already signed on, including Procter & Gamble, 3M, and American Eagle. This is notable, as all of these companies move products at a high volume across multiple channels, showing that Amazon is going after established supply chains as opposed to smaller sellers. The market responded accordingly, as UPS and FedEx shares fell more than 9% by day’s end.

Why It Matters

Amazon built one of the most expensive and complex logistics networks in the world to support its own retail machine, and now it is opening that system to outside companies in a way that turns sunk infrastructure into a revenue engine.

Its logistics system is now being used as a standalone service, where storage, freight movement, and delivery are being bundled into a single offering that other businesses can plug into without building or managing their own networks…

Why Apple’s latest move has #1 software company’s investors excited

Apple just enabled Starlink satellite support to T-Mobile iPhones.

One of the biggest potential winners from global satellite coverage?

Mode Mobile.

Just about everything Elon touches turns to gold:

• SpaceX projected IPO at $1.75T

• Tesla up by over 30,000% since IPO

• And now - iPhone’s get satellite access

But while Wall Street focuses on Apple, Mode Mobile is quietly positioned to capitalize on this global satellite revolution.

Their EarnPhone technology already:

• Reaches 490M+ users worldwide

• Helped those users save and earn over $1 billion

• Grew revenue 32,481%

And that was before global satellite coverage.

With SpaceX eliminating "dead zones," Mode's earning technology can reach 3B+ unbanked people globally in rural populations worldwide.

We’re talking about emerging markets with no infrastructure.

Right now, you can still invest at $0.50/share.

Over 59,000 shareholders have already claimed their shares and they’ve just secured the $MODE ticker from Nasdaq. The time to invest is now, before any potential IPO.*

Tap into a $1T opportunity — invest now at just $0.50/share and get up to 20% bonus!

The decision impedes on the most profitable aspect held by legacy carriers, of which both UPS and FedEx have long depended on steady, high-volume business shipments that are easier to route, less fragmented than residential deliveries, and more predictable in both timing and margins.

By going after bigger companies that move large quantities of products across multiple channels, they are impeding on contracts and relationships that have been stable for years by forcing their competitors to defend and compete with their pricing and service levels.

Once enough companies start using Amazon for even part of their shipping, faster delivery and smoother coordination won’t stand out anymore, they’ll just be expected, subsequently forcing every major carrier to either keep up or start losing business.

How It Affects You

If Amazon continues its push into shipping and forces carriers to compete harder, delivery fees across a lot of websites may come down or get included into pricing more often, which means fewer surprise charges at checkout. It may also have an affect on what’s available to buy in the first place.

When companies can move inventory faster and restock more predictably, you see fewer ‘out of stock’ messages and less waiting around for basic items to come back. A tighter supply chain means shelves, both online and physical, stay filled more consistently.

If more companies begin to rely on Amazon to move their products, a bigger share of what Americans buy ends up flowing through one system, even when they’re not shopping on Amazon itself. That kind of concentration heavily influences pricing, delivery standards, and even which products are easier to find over time, because smaller businesses may end up adapting to Amazon’s system rather than building their own.

*Disclaimer: Please read the offering circular and related risks at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A+ Offering.

Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.

The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.

Tesla return calculated based on Yahoo Finance adjusted stock price data from June 29, 2010 to January 31, 2025.