Amazon's reported entry into delivery service won't be as bad for UPS and FedEx as it will be for the United States Postal Service, according to a J.P. Morgan analyst in the space.
"Sentiment remains cautious on the two stocks based on a heightened risk of disruption. We believe the headline overlooks the primary company at risk, which is the U.S. Postal Service," wrote analyst Brian Ossenbeck. "We estimate the USPS is Amazon's largest carrier so not only does it stand to lose volumes from Shipping with Amazon, but it generally lacks the same labor flexibility and service offerings; postal workers are unionized and Amazon Flex drivers can also provide premium products and services such as perishable goods and same day deliveries."
Ossenbeck's note came one week after The Wall Street Journal reported that the e-commerce giant is gearing up to launch its own delivery service – called Shipping with Amazon (SWA) – a move many deem a jab at carriers UPS and FedEx.