Amazon overtakes shipping giants UPS and FedEx to become America's largest delivery company

Amazon, a major internet mail order company, not only sells products, but also provides delivery services to deliver purchased products to users. It has become clear that Amazon has become the largest delivery company in the United States, surpassing major shipping companies

United Parcel Service (UPS) and FedEx in terms of the number of packages delivered.

Amazon Tops UPS and FedEx to Become Biggest US Delivery Business - WSJ

UPS and FedEx are no longer the top delivery companies in the US

The Biggest Delivery Business in the US Is No Longer UPS or FedEx

By November 23, 2023, Amazon will have delivered 4.8 billion packages in the United States alone, and is expected to reach approximately 5.9 billion packages throughout the year. On the other hand, UPS has expressed the opinion that ``The number of items delivered in the United States this year is unlikely to exceed the 5.3 billion items in 2022.'' In addition, FedEx will only deliver approximately 3.05 billion items in 2022, and it has become clear that Amazon has the top share in the delivery industry in the United States.

However, as of 2016, it was not envisioned that Amazon would become the largest shipping company, and Fred Smith, CEO of FedEx at the time, said, ``The idea that Amazon would become a threat to FedEx is nothing more than a fantasy.'' ” and scoffed. He also expressed the view that, ``In the near future, the largest delivery company for Internet mail order will probably be UPS, FedEx, or the United States Postal Service (USPS).''

Still, in 2018, Amazon launched a program that lets you start a franchise to deliver packages purchased on Amazon for as little as $10,000, and outsources local deliveries to local contractors. . Approximately 200,000 delivery workers in the United States are registered with this program, and Amazon says, ``This program has greatly contributed to the rapid increase in the number of deliveries per day.''

In addition, Amazon has significantly expanded its internet mail order network in response to the spread of the new coronavirus infection, and has added logistics facilities such as its own warehouses and sorting facilities. As a result, it has been reported that the size of logistics facilities has nearly doubled from the early stages of the novel coronavirus outbreak in 2020 to the second half of 2021. Furthermore, Amazon is said to be working to build regional distribution networks and reduce the distance traveled by parcels in order to shorten delivery times and improve profitability. CFO Brian Olsavsky said, ``Improving delivery speeds like this is a key factor in Amazon's continued growth and will lead to more frequent purchases by Prime members.''

Regarding Amazon becoming the largest delivery company in the United States, an Amazon spokesperson said, ``The improvements in home delivery in recent years are largely due to Amazon's franchise program, and we continue to work with various delivery partners and carriers to deliver deliveries. We will continue to work on expanding our capabilities.'

A UPS spokesperson said, ``We are not competing with Amazon for package delivery volume, but rather focusing on delivering to our most profitable customers, such as the medical sector and small and medium-sized businesses.'' 'I will.' In addition, FedEx is focusing on the online mail order market other than Amazon, and says it will further expand its share in multiple areas of the small parcel delivery market in 2023.

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