From the Wall Street Journal this morning, a story about how in terms of parcel volume, Amazon now delivers more than both UPS and FedEx, and is widening the gap. (The US Postal Service still delivers more than all of them, in part because if handles packages for all three companies.)
Some context from the Journal story:
“A decade ago Amazon was a major customer for UPS and FedEx, and some executives from the incumbents and analysts mocked the notion that it could someday supplant them. Amazon’s outsize growth combined with strategy shifts at FedEx and UPS have changed the balance.
“Before Thanksgiving this year, Amazon had already delivered more than 4.8 billion packages in the U.S., and its internal projections predict that it will deliver around 5.9 billion by the end of the year, according to documents viewed by the Wall Street Journal. Last year Amazon shipped 5.2 billion packages.
“Amazon’s figures include only packages that Amazon shipped from beginning to end. UPS and FedEx include packages they hand off to the postal service for final delivery in their tallies.”
The story notes that “as Amazon’s share of deliveries has increased, FedEx and UPS have said in recent years they weren’t in a race for volume and were instead focused on delivering more profitable parcels. FedEx parted ways with Amazon in 2019. Amazon accounts for about 11% of UPS’s revenue.
“The logistics milestone came without any fanfare from Amazon, which is the subject of a lawsuit from the Federal Trade Commission over the way it competes.”
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