Amazon becomes the third company that delivers the most packages, surpassing FedEx

Amazon has grown so large that it now controls a fifth of the delivery business, and is poised to overtake UPS.

Advertisements

In 2004, Amazon  dominated about 0.2% of deliveries in the United States , and has now taken over a fifth of the business, even on the verge of surpassing UPS and the United States Postal Service (USPS), according to information from the logistics firm Pitney Bowes.

Data shows that the e-commerce giant has overtaken FedEx as America’s third-largest delivery company, and is hot on the heels of UPS, the only private company that still delivers more packages than Amazon.

“Amazon Logistics generated 109 percent year-over-year growth in package revenue and a 127 percent increase in package volume,” says Pitney Bowes .

Logistics growth

Previously, Amazon relied on other companies to deliver to its customers, such as UPS and FedEx , but then the tech giant set out to develop its own delivery logistics after a disastrous Christmas campaign in 2013, when there were so many orders through the US. Amazon site that delivery services crashed.

The following year, Amazon  accelerated the construction of its own distribution centers by filling up with semi-trailers, cargo planes and pickup trucks. 

Amazon Logistic , Amazon’s delivery division, can open up to more outside business and take advantage of huge internal logistics investments, just like Amazon Web Services in a profitable business.