As of February 2018, Amazon began to offer its own delivery service in Los Angeles. This announcement most likely came as a surprise to UPS and FedEx. The announcement sent the market share value of the two shipping companies down. This vertical integration strategy directly competes with its shipping suppliers. This has been Amazon’s approach since it’s inception.
Companies like UPS where a Union workforce maintains a strong presence can put up barriers reducing the companies ability to innovate and invest in disruptive technologies. Ultimately, this unwillingness to adapt and change as an organization with the times has caused large leading companies such as Sears and Toys-R-Us to lose their competitive advantage go out of business.
Amazon has also done this with its Amazon Web Services. It developed the technology to the point where it considered appropriate and then opened the services up to Netflix and other firms to reduce the price of continued operations and make the business model more efficient. Amazon has become a master of scaling up operations through expansion and then offering those services to other potential customers.
Amazon Republic 