Amazon.com will suspend a delivery service that intends to compete with UPS and FedEx in the U.S.
The online retailer told prospects that the service, Amazon Transport, will be paused starting in June.
Amazon is withdrawing the service because it needs people and the capacity to deal with a rise in its own customers’ orders, the Journal reported, citing sources.
Amazon Shipping is available in a handful of U.S. cities, along with Los Angeles, and handles non-Amazon and Amazon marketplace packages.
The corporation is grappling with a demand surge in the U.S., where most residents are under remain-at-home directives to cease the spread of the novel coronavirus that is sweeping across the globe.
Amazon has been unable to get many packages to customers in one or two days, as it had promised prior to the pandemic.
The suspension of Amazon Delivery will enable the corporate to focus on its core delivery operation, stated Trevor Outman, founder of consultancy Shipware.
Amazon stated in March it will hire 100,000 warehouses and delivery staff in the U.S. to deal with a spike in online orders.
UPS and FedEx shares surged 2% in extended trading following the suspension news.