According to Morgan Stanley estimates, Amazon is already delivering about half of its packages in the U.S. and will soon pass both United Parcel Service and FedEx in total volume.
Reportedly, Amazon Logistics more than doubled its share of U.S. package volumes from about 20% in recent history and is now shipping at a rate of 2.5 billion per year. For comparison, it is estimated that UPS and FedEx have U.S. shipping volumes of 4.7 billion and 3 billion packages per year, respectively.
"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 about the one-day Prime shipping on an earnings call at the end of 2019.
For his company, it’s not just about getting more packages to more customers at higher speeds. It’s also about owning everything from the arrival of a product at an Amazon factory (or the creation of the product from an Amazon subsidiary) to the so-called last-mile delivery to the customer’s doorstep. And the numbers say they have been doing quite a good job so far. What is your experience with Amazon deliveries? Tell us in the comments!
