Amazon to challenge UPS, FedEx with new delivery service

(FOX News) -- Amazon is preparing to launch a delivery service to compete directly with shipping stalwarts UPS and FedEx.

The service will pick up packages from businesses and ship them to consumers, people familiar with the matter told The Wall Street Journal.

While the service will be tested with third-party sellers in Los Angeles, the e-commerce giant will expand the service to other cities and will open the service to other businesses beyond third-party sellers.

The Journal also reported that Amazon is planning to undercut UPS and FedEx on pricing.

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