Amazon is already delivering half of its packages
Amazon has been steadily growing its logistics operations, and it now delivers more than half of all packages in the US, according to Morgan Stanley
It means Amazon, which now operates its own freighters and cargo planes, is accelerating its push to own the entire logistics chain and end its relationship with companies like FedEx and UPS, reports The Verge.
At the current rate, Amazon is set to pass both FedEx and UPS in US package volume, with the company currently delivering 2.5 billion packages per year compared to FedEx’s 3 billion and UPS’s 4.7 billion, Morgan Stanley says. Amazon’s number doubled in just the last year alone, from delivering about 20 percent of all of its own packages to now about half. A substantial contributing factor here is Amazon’s new one-day Prime shipping initiative, which it kicked off earlier this year and promises to bring to more markets and more products as time goes on.
“Customers love the transition of Prime from two days to one day — they’ve already ordered billions of items with free one-day delivery this year. It’s a big investment, and it’s the right long-term decision for customers,” CEO Jeff Bezos said of one-day Prime shipping on an earnings call in October.
For Amazon, it’s not just about getting more packages to more customers at higher speeds. It is about the control of the entire logistics chain from start to finish.
More Amazon news
Amazon stops deliveries in some cities amid raging protests in the US
Amazon shipping delays due to violent riots in the USAmazon scaled back deliveries in a number of cities including Chicago and Los Angeles after the death of George Floyd sparked demonstrations across the country.Bloomberg reported that Amazon told its...
Amazon is shipping Non-Essential items again
Amazon Recovers From Essentials-Only Amazon has opened its warehouses to all items and reintroduced shopping functionality like deals and recommendations. Fast shipping for non-essentials is back as well. Amazon started accepting new deals last week and...
Amazon is pulling back on promotions to handle surging demand
Amazon wants shoppers to buy less Increasing order volume and operational complications may be forcing Amazon to move away from features and promotions that drive sales. It may take more than two months for Amazon to fulfill orders in all categories,...