Forget drones, Amazon has been experimenting with a far more innovative method of providing same-day delivery to its customers. As part of a new pilot program, it turns out that one of the most efficient methods of getting packages to doorsteps are good old-fashioned yellow taxis. 
 
 According to the Wall Street Journal, Amazon is making deliveries in San Francisco and Los Angeles which use the taxi-hailing app Flywheel to summon cabs to local distribution centers. There, the cabs are loaded up with "as many as 10 packages bound for a single ZIP Code, paying about $5 per package for delivery within one hour." 
 
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 While same-day delivery is become more and more common for many retailers, companies like Amazon, Google and eBay are all experimenting with different methods to get goods to consumers as fast as possible, with services like eBay Now touting its "one-hour or less" delivery in five American cities. But these kinds of services are often made with dedicated vehicles, which can be pricey for the customer, or rely upon hefty rates imposed by existing shipping services. Amazon Fresh, for example, delivers through the U.S. Postal Service, and it definitely ain't cheap. 
 
 Taxis sound low-tech but logistically they make sense. They're more direct than UPS or FedEx, and much cheaper than courier services. The key is for Amazon to be able to conduct a lightning-fast cost-savings analysis for each outgoing package: It's not only deciding which deliveries to bundle into a single cab, geographically, but also how long to hold certain packages before they should simply go out in a cab alone. Forrester Researcher analyst Sucharita Mulpuru told the WSJ that Amazon is working on developing an algorithm that will funnel packages towards the most appropriate delivery method. 
 
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 While deliveries (of goods and not people) are certainly something that rideshare companies are exploring, it's only been in a very limited way so far—Uber has a bike messenger service in New York City, for example. But I suppose when it comes to cabs delivering my brand-new flatscreen, I'm more worried about the customer service angle. Are the taxi drivers responsible for making sure the packages are safely delivered? Are they carrying insurance? 
 
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 There is one bright side for the taxi industry, where drivers are feeling the hit from rideshare apps: Amazon deliveries could create an additional stream of income for cab drivers, especially when they're not as busy in the morning. [WSJ] ||||| Amazon may be taking an even stronger hold on the delivery business 11:44 AM ET Fri, 9 Feb 2018 | 00:50 
 
 Amazon is gearing up to launch a delivery service for businesses, the Wall Street Journal reported on Friday. 
 
 This would pit the e-commerce giant against the likes of FedEx and UPS. 
 
 The service is called "Shipping with Amazon" and will see the tech giant picking up packages from businesses and delivering them to customers, the WSJ said, citing people familiar with the matter. 
 
 Amazon's business delivery is expected to roll out in Los Angeles in the coming weeks with third-party merchants that sell goods via its website. More cities are to follow. 
 
 The U.S. firm will eventually roll this out to other businesses with Amazon planning to undercut UPS and FedEx on price, according to the WSJ. 
 
 Shares of FedEx and UPS were sharply lower in pre-market trade on Friday morning. 
 
 UPS said it is still a partner of Amazon. 
 
 "UPS continues to support Amazon and many other customers and we don't make comments about their business strategies or decisions regarding their utilization of UPS services," a spokesperson for the company told CNBC in an emailed statement. 
 
 Read the full Wall Street Journal article here.
– Amazon isn't just expanding grocery deliveries: The company will soon offer a shipping service for businesses, putting it in direct competition with UPS and FedEx, whose shares saw sharp declines in pre-market trading Friday, per CNBC. "Shipping with Amazon" will see Amazon pick up packages from third-party merchants who sell on Amazon's website before shipping them to buyers at lower rates than offered by UPS and FedEx—though Amazon may have to use those companies to reach areas beyond its delivery network, sources familiar with the plan tell the Wall Street Journal. The service is expected to debut within weeks in Los Angeles, where a pilot program has been in the works for more than a year. The service could be expanded to more cities, possibly this year. "We're always innovating and experimenting on behalf of customers and the businesses that sell and grow on Amazon to create faster lower-cost delivery choices," a spokeswoman says, without offering specifics, though the Journal notes "Shipping with Amazon" could eventually be offered to other businesses, too. Sources say Amazon will be able to undercut UPS and FedEx because it already delivers some of its own orders in 37 cities. "Any extra space it can fill in its trucks with additional deliveries is considered added revenue," the Journal reports, noting Amazon eventually hopes to offer two-day deliveries, even on weekends.