Amazon opens logistics network to other firms

On May 4, 2026, Amazon announced the launch of "Amazon Supply Chain Services," a new initiative that opens its logistics network to external businesses. The move marks a formal step by the company to offer its internal freight, distribution and parcel shipping capabilities as services to other firms.

The offering is designed to serve companies across a range of sectors, including healthcare and manufacturing. By making its existing infrastructure available more broadly, Amazon is positioning its logistics operations as a standalone growth driver in addition to its retail and cloud businesses.

Amazon’s logistics infrastructure underpinning the new service includes a fleet of more than 80,000 trailers and 100 aircraft. These assets support freight transport, distribution center operations and last mile parcel delivery that can now be accessed by outside companies.

The company’s scale is expected to enable integrated services that span bulk freight movements, warehousing and fulfillment, and direct-to-customer shipping. Opening this network to third parties formalizes capabilities Amazon had previously built primarily to support its own retail operations.

Major corporations have already signed on as clients of Amazon Supply Chain Services. Procter & Gamble (PG), 3M (MMM) and American Eagle Outfitters are among the first businesses to use Amazon’s logistics offerings.

These early adopters indicate that demand is coming from both consumer goods manufacturers and apparel retailers. The inclusion of sectors such as healthcare and manufacturing in Amazon’s stated target markets suggests the company is pursuing a broad industry footprint for the new service.

The announcement had immediate effects in the stock market. Following the news of Amazon Supply Chain Services, shares of FedEx (FDX) and UPS declined by about 2.4% and 1.8%, respectively, as investors assessed the potential impact of increased competition in logistics and parcel delivery.

The stock moves reflect concern that Amazon’s expanded role in third party logistics could weigh on established carriers. By leveraging its large trailer and aircraft fleet to serve external clients, Amazon is entering areas traditionally dominated by companies such as FedEx (FDX) and UPS.

The development underscores how Amazon’s logistics capabilities have evolved into a service that may compete directly with incumbent package delivery and freight providers. The response in carrier shares highlights the market’s focus on how this competitive landscape may change as more companies join Amazon’s network.