Shares of United Parcel Service Inc and FedEx Corp fell on Thursday after a report that Amazon. com Inc was testing its own delivery service, potentially encroaching on the territory of the package-delivery companies.

Amazon will oversee pick-up of packages from warehouses of third-party merchants selling goods on its website and their delivery to customers' homes – a function often handled by longtime partners UPS and FedEx, according to sources.

UPS’s shares fell as much as 2 per cent while those of FedEx dropped 1.6 per cent.

Amazon is testing a delivery service to make more products available for free two-day delivery and relieve overcrowding in warehouses, two people familiar with the plan told Bloomberg.

Conroy Gold shareholder unhappy with issue of new shares

---

Abu Dhabi considering bond sale to plug budget deficit

---

Markets lifted by optimism over outlook for US economy

---

Ryanair shares soar after collapse of UK rival Monarch

---

Amazon said it was using the same carrier partners to offer the programme that it has used for years, including UPS and FedEx.

Morningstar analyst Keith Schoonmaker downplayed Amazon's potential threat, saying the retailer constitutes a mid-single-digit proportion of earnings at UPS and low-single-digit at FedEx.

– (Bloomberg)