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Tomé on Wednesday called the program a “very clever marketing play” by Amazon. UPS, which generated 11.7% of its $94 billion in 2021 revenue from Amazon, doesn’t appear to be concerned about any encroachment. Because it does not offer pickups except in very rare circumstances, it is not considered a bona fide integrated carrier in the mold of FedEx, UPS and the Postal Service. Amazon appears to be testing the shallow waters to gauge merchant response to the program. Last Thursday’s announcement was a baby step. Postal Service, once a major Amazon vendor but marginalized in recent years by Amazon taking more delivery business in-house. It would also further distance Amazon from the U.S. (NYSE: FDX), which hasn’t had a relationship with Amazon in nearly three years. It would intensify its rivalry with FedEx Corp.
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In theory, such a move would put Amazon in direct competition with UPS Inc., (NYSE: UPS), which counts Amazon as its largest delivery customer. It is an area that Amazon CFO Brian Olsavsky may be asked to comment on Thursday afternoon when Amazon hosts analysts following the release of its first-quarter results. It is the very last part that some will seize upon as proof that Amazon, after half a decade of speculation, would finally launch a delivery service aimed at businesses not using its retail or fulfillment offerings. However, Amazon (NASDAQ: AMZN) said its invite list will be expanded throughout the year to include merchants that don’t use its fulfillment service and to those companies that don’t sell on the platform. The service is currently available to merchants already using Amazon’s fulfillment and delivery services. The service, called Buy with Prime, will allow a select group of merchants to offer the benefits of Amazon’s ubiquitous Prime offering, including deliveries, through their online stores. Only time will tell how far Amazon goes with this. has opened its delivery doors to other online stores. About six years in the making and maybe not how it was originally envisioned, Inc.