Amazon delivers more than half its own packages
Amazon now delivers over half of its U.S. packages, according to a Morgan Stanley analysis.
- The financial service firm estimates Amazon has more than doubled its share of U.S. package volumes.
- It is now shipping 2.5 billion packages a year.
- Meanwhile, UPS and FedEx and are shipping 7.7 billion packages combined.
- By 2022, Morgan Stanley estimates Amazon will be delivering 6.5 billion packages a year — with UPS at 5 billion and FedEx at 3.4 billion.
- That would mean that in just a few years, Amazon will become the top U.S. delivery service by volume.
- Amazon is focusing its delivery services in urban and suburban areas where it can more cost effectively deliver packages.
- Over the summer, Amazon announced that it would no longer use FedEx for ground deliveries.
- Analysts say that both FedEx and UPS see Amazon’s fulfillment network growth as a threat to their business, though they also had to walk the line of having Amazon a customer.
- FedEx said that losing the Amazon deal wasn’t a huge hit to its bottom line and that its FedEx Express service is more core to its business plan.
- Amazon, meanwhile, has been rolling out fleets of Amazon Prime branded tractor trailers, delivery vans and airplanes.