Amazon is turning its sprawling global logistics operation into a commercial service available to all businesses, a move that directly targets the $1.3 trillion logistics market and threatens incumbents like FedEx and UPS. The new business, Amazon Supply Chain Services (ASCS), aims to replicate the success of Amazon Web Services, which turned the company’s internal computing infrastructure into the world’s largest cloud provider.
"Amazon is bringing the infrastructure, intelligence, and scale of its supply chain services—proven over decades—to businesses everywhere, much like Amazon Web Services did for cloud computing,” Peter Larsen, vice president of Amazon Supply Chain Services, said in a company press release.
Announced on May 4, 2026, the service provides end-to-end logistics, including freight, distribution, and parcel shipping. The offering leverages Amazon's vast network of over 80,000 trailers, 100 aircraft, and 200 U.S.-based fulfillment centers. Early users include major brands such as Procter & Gamble, 3M, Lands’ End, and American Eagle Outfitters.
The move positions Amazon, whose third-party seller services already generated $172 billion in net sales last year, to capture a larger share of the global logistics market. Investors reacted immediately to the competitive threat, with shares of both FedEx and UPS tumbling 10% after the announcement, according to a Bloomberg report.
An 'AWS for Supply Chain'
The new service centralizes Amazon's piecemeal logistics offerings into a single, unified platform for businesses of any size, including those in healthcare, automotive, and manufacturing. Companies can now use Amazon's network to ship raw materials, move finished goods, and fulfill customer orders from any sales channel, including competing marketplaces like Walmart or Shopify.
ASCS offers access to freight services across ocean, air, ground, and rail, along with customs support and AI-powered inventory forecasting. The goal is to provide other businesses with the same cost efficiencies and delivery speeds that Amazon built for its own retail operations, which saw first-quarter revenue grow 17% year-over-year to $181.5 billion.
The launch has significant implications for Texas, a key state in Amazon's operational map. The company has invested over $100 billion in Texas since 2010 and supports more than 86,000 direct jobs. With more than 11 million square feet of warehouse space in North Texas alone, local businesses in manufacturing and retail now have a new option for third-party logistics.
The expansion comes as Amazon continues to build its presence in the state. In November 2024, the company began construction on a new $200 million, 1.7 million-square-foot operations facility in Cleburne, expected to create up to 1,000 jobs. This new service allows other companies to directly utilize the capacity of this massive and growing infrastructure.
This article is for informational purposes only and does not constitute investment advice.
