Amazon is the largest delivery service in the US, delivering more orders than UPS and FedEx, and is expected to keep growing in the future.
Not long ago, the idea of Amazon outgrowing the two largest courier companies—UPS and FedEx—would have been unimaginable. That’s no longer the case in the US.
According to an article by Dana Mattioli and Esther Fung of The Wall Street Journal, Amazon “delivered more packages to U.S. homes in 2022 than UPS, after eclipsing FedEx in 2020.”
Furthermore, experts have suggested that Amazon is set to only get bigger and leave UPS and FedEx further behind in the coming years.
It’s not surprising, given Amazon’s monumental growth in the last two decades and factor in recent events from the last year that have likely slowed growth at UPS and FedEx.
At the beginning of November 2023, UPS announced its Q3 earnings were down 12.8% YoY and narrowly avoided a strike in July.
Meanwhile, FedEx is taking steps to consolidate FedEx Ground and FedEx Express. While the move will make FedEx more efficient, it will not be completed until June 2024.
On the other hand, Amazon held its biggest-ever Prime Day event in October and plans to hire an additional 250,000 logistics staff for the holiday season.
On top of that, Amazon recently revived its ‘Amazon Shipping’ service, which enables third-party Amazon sellers to use Amazon’s domestic delivery services to fulfill orders (even if a sale was made on another marketplace).
Elsewhere, Shannon Thaler of the New York Post reported that Amazon plans to “add a slew of new robotics and artificial intelligence-technologies at its warehouses in an effort to reduce delivery times and speed up inventory operations.”
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