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Report: Online giant testing its own delivery service

Amazon’s new program could give carriers like United Parcel Service and FedEx a run for their money.

The online giant is experimenting with a program that rivals services handled by longtime partners UPS and FedEx. Specifically, it is dabbling in a program designed to make more products available for free two-day delivery and relieve overcrowding in its warehouses, according to Bloomberg.

Handling deliveries itself, Amazon oversees pickup of packages from warehouses of third-party merchants selling goods on Amazon.com and their shipment to customers’ homes. Besides giving the retailer more flexibility and control over the last mile of delivery, the pilot program is slashing operating costs through volume discounts, and reducing congestion in Amazon’s warehouses, the report said.

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