The service called "Amazon Shipping" was available in only a few handful cities in the United States, the Journal noted.
Ahead of the novel coronavirus (COVID-19) pandemic, the e-commerce giant was seemingly looking to establish it as a competitor to prominent delivery companies likes United Parcel Service Inc. (NYSE: UPS) and FedEx Corporation (NYSE: FDX).
"We understand this is a change to your business, and we did not take this decision lightly," Amazon is said to have told shippers, according to the Journal. "We will work with you over the next several weeks so there is as little disruption to your business as possible."
The pandemic significantly increased the demand for Amazon services as widespread lockdowns imposed to curb the spread of the virus forced a majority of people to stay home.
Amazon said in March it was looking to hire 100,000 additional workers to meet the increased workload. The Seattle-based company's warehouses across the country remain functional at full capacity despite some protests by workers at multiple sites.
Amazon shares closed 0.7% higher at $2,011.60 on Tuesday. The shares traded slightly lower at $2,010 in the after-hours session.
The shares of FedEx and UPS surged in the after-hours session following the news.
FedEx traded nearly 3.5% higher at $120 after closing the regular session 2.56% lower at $115.95. UPS traded 3.2% higher at $95.88 after closing the regular session 2.9% lower at $92.91.
See more from Benzinga
- 'The Netflix Of China' Inflating Numbers Since Before IPO, Short Seller That Warned Against Luckin Coffee Says
- Uber Launches Tool To Help Drivers Affected By Coronavirus Find Work
- Luckin Stock Drops Further As Lenders Seek To Seize 76.4M Shares For Defaulted Loan
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.