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 launches full online store in the Netherlands
Amazon launches dedicated Dutch service Amazon has launched its new Dutch website Amazon.nl, with a range of more than 100 million products. Amazon previously used its Dutch site only for the sale of e-books, reports BrusselsTimes.com. The new site will...
Amazon speeds up same-day delivery
Amazon expands same-day delivery with the new network of mini warehouses Amazon unveiled its latest initiative to speed up delivery times on millions of items for its Prime members. Amazon has quietly built smaller versions of its fulfillment centers...
The Court examines Amazon’s third-party liability
Who's responsible for what you buy on Amazon? The court is to decide Federal judges will determine if Amazon holds responsibility for damages caused by goods sold on Amazon Marketplace. According to CNN, the U.S. Third Court of Appeals in Philadelphia is...