Amazon plans to launch its own shipping service for businesses, sending their products directly to consumers, reports The Wall Street Journal. The "Shipping with Amazon" service will begin in Los Angeles soon — for now, targeted only at Amazon's own third-party merchants — but it's expected to roll out to other cities and customers eventually.

Why it matters: The move positions Amazon to take on shipping giants UPS and FedEx, especially as the tech giant plans to undercut both their prices. It's reflective of Amazon's broader ambitions beyond e-commerce, highlighted by its burgeoning Hollywood presence, acquisition of Whole Foods, and cloud-computing services. FedEx (FDX) shares are currently at $231.21 (-3.37%.) Amazon (AMZN) shares are currently at $1,315.06 (-2.62%.)