Dana Mattioli and Esther Fung of The Wall Street Journal tell their readers that Amazon is eclipsing both UPS and FedEx in the delivery business, and the gap is growing. They write:
The Seattle e-commerce giant delivered more packages to U.S. homes in 2022 than UPS, after eclipsing FedEx in 2020, and it is on track to widen the gap this year, according to internal Amazon data and people familiar with the matter. The U.S. Postal Service is still the biggest parcel service by volume; it handles hundreds of millions of packages for all three companies.
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. […]
While Amazon has surpassed both companies on residential delivery, it has yet to replicate their global coverage or the flip side of their operations. “Amazon is very good at the one-way network, delivering goods at faster speeds but it doesn’t have the same level of pick-up and delivery coverage,” said Brian Ossenbeck, an analyst at JP Morgan.
Read more here.