Amazon is launching a shipping company

Caitlin Morrison
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Amazon wants to start its own shipping business (Source: Getty)

Online retail giant Amazon is branching out and launching a shipping business, placing it in direct competition with the likes of UPS and FedEx.

According to the Wall Street Journal, Shipping with Amazon (SWA) will pick up packages from businesses and ship them to consumers.

The group is expected to roll out the new delivery service in Los Angeles in coming weeks, with the aim of expanding the service to more cities as soon as this year. The move follows a pilot in LA over a year ago. The Californian city is in the running to become the home of Amazon's new headquarters.

The group's shipping service has also previously been trialled in London.

At the end of last year, Donald Trump slammed Amazon over its delivery strategy when he called on the "US Post Office" to raise prices.

The US President said on Twitter: "Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!"

Earlier this month, Amazon was named the world's most valuable brand, beating Google and Apple to the top spot.

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