Amazon wants to make more products available for two-day delivery, so it's launching a FedEx competitor

Bad news for FedEx and UPS—Amazon is coming to eat their lunch.

Amazon is testing a new delivery service with the intention of making more products available for free two-day delivery, according to a Bloomberg report. The service would also help take pressure off of overcrowding issues at its warehouses.

The plan would put Amazon in direct competition with its longtime partners UPS and FedEx, which currently manage most of the two-day deliveries made by Amazon Prime members. Following the revelation this morning, UPS shares were down 2.3 percent and FedEx shares were down 2 percent in premarket trading. Read more...