Shares of logistics giants UPS and FedEx fell sharply on Monday after Amazon announced it is opening its supply chain network to outside businesses, signaling a potential shift in the logistics landscape.
UPS and FedEx both dropped around 10% in midday trading, with investors reacting to the news that Amazon is expanding its logistics capabilities beyond its own operations.
The move could intensify competition in the logistics sector, as Amazon's vast infrastructure and scale may now directly challenge traditional logistics providers.
Amazon did not immediately respond to requests for comment.
UPS and FedEx have not yet issued statements on the development.
The market reaction highlights growing concerns that Amazon's expansion into logistics could disrupt the traditional supply chain model, particularly as the e-commerce giant continues to invest heavily in infrastructure and automation.