On Tuesday, Amazon said it would allow other businesses to store and ship goods ranging from raw materials to final products through its vast network. The ecommerce giant aims to challenge the US market, long dominated by UPS and FedEx.
Shares of FedEx and UPS fell more than 9% each during Monday trade, while Amazon rose nearly 1% on the NYSE.
Amazon Supply Chain Services opens the ecommerce giant’s freight, distribution, fulfillment, and parcel shipping capabilities to businesses of all types and sizes, directly competing with third-party logistics providers.
The service is being positioned as the AWS of logistics, with early adopters including Procter & Gamble.
The company boasts a fleet of more than 100 cargo planes — behind only FedEx and UPS — along with a vast network of warehouses and sorting hubs.
For Delhivery, which competes for B2B and B2C logistics contracts, this means a threat from a well-capitalised rival with an established and wide network.
Separately, Delhivery approved the grant of 1,00,360 stock options to eligible employees under ESOP 2012, effective May 1, with an exercise price of Re 1 per share.