- Shares of UPS were down Monday morning following Amazon’s announcement last week that it would launch its own shipping service.
- UPS and FedEx fell on the news Friday, and UPS’ stock was down on Monday as well.
- Amazon has made several moves in the past to develop its own shipping and logistics service.
- Click on UPS and FedEx to see their stock price move in real time.
Shares of UPS fell for the second straight session Monday morning following the news Amazon plans to launch its own shipping service that would directly compete with the two largest US shipping companies, UPS and FedEx.
UPS’s stock was down 0.71% at $US105.63 per share. It was trading 4.67% below its stock price of $US110.83 per share on Thursday, before the news broke.
Shares of the Atlanta-based UPS fell Monday while its rival, FedEx gained, possibly because of its heavier reliance on Amazon for revenue. UPS carries about 30% of Amazon’s total US shipments, which is the equivalent of $US1 billion in annual revenue from Amazon. By contrast, Amazon only accounts for 3% of FedEx’s annual revenue.
FedEx recouped its losses from Friday. It was trading up 0.74% at $US237.05 a share.
Amazon has pushed into the delivery space in the past. Last October, the Seattle-based company said it would deliver packages on behalf of third-party sellers on its website. The company has also moved into delivery and logistics through its leasing of aircraft and ocean freight equipment.
UPS’s stock was down 14.57% for the year.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.