A growing business with many sources of income, Amazon.com (NASDAQ: AMZN) is letting one of them dry for now. According to a report published Tuesday in Wall Street newspaper, citing “people familiar with the subject”, the trade giant will soon stop the activities of Amazon Shipping, its third-party logistics service. The shutdown will begin in June and is intended to be temporary.
Amazon Shipping is actually the retailer that uses some of its drivers to pick up customer packages and deliver them. It is relatively small for the business, as it is only available in a few selected markets.
As a result of the coronavirus epidemic and the resulting increase in demand for product delivery, Amazon is in an “all on deck” situation to move its own goods. Recently, the company announced that it would hire 100,000 new full-time and part-time workers to assist in these efforts. The company has also reoriented its priorities towards the delivery of “essential” products; other expeditions are postponed by several days, even weeks.
In a note obtained by the Newspaper, writing to Amazon Shipping customers, the company said that “[w]We understand this is a change for your business and we did not take this decision lightly. We will work with you over the next few weeks to minimize the disruption to your business. “
Amazon has not yet released an official public statement on the status of Amazon Shipping.
The retailer’s shares rose 1.27% on Tuesday, but that was enough to beat many leading stocks. The modest gain also beat the main stock indexes, most of which fell that day.