Amazon Logistics is Big
Amazon is now a major logistics and freight company in America. This is a massive displacement on FedEx and UPS, and a lesson on vertical integration of business.
Amazon is now surpassed only by the U.S. Postal Service in the volume of deliveries it makes to American homes. The e-commerce giant outran FedEx in 2020; it beat UPS just last year. The development — surprising given Amazon’s dependence on the two services a decade ago — was enabled mainly by a franchise program allowing individuals to deliver packages. Then came the pandemic, during which the company nearly doubled its network after opening hundreds of warehouses and other logistics facilities. This year, Amazon projects it will deliver 5.9 billion packages in the U.S., up from 5.2 billion in 2022.
UPS expects to ship 5.3 billion packages domestically in 2023, including those delivered through the postal service; FedEx estimates delivery of 3.05 billion in its current fiscal year.
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