Amazon has surpassed both United Parcel Service and FedEx in terms of parcel volumes, The Wall Street Journal reported citing internal Amazon data and sources familiar with the matter.
Amazon has already delivered over 4.8 billion packages in the United States by Thanksgiving this year
Amazon delivered more packages in the United States than UPS in 2022, and it had already surpassed FedEx in 2020. Amazon has already delivered over 4.8 billion packages in the United States by Thanksgiving this year, and internal projections predicted that it would deliver around 5.9 billion by the end of the year. In comparison, UPS stated that its domestic volume for that time period was unlikely to exceed the previous year’s total of 5.3 billion, and FedEx’s domestic Express and Ground parcel volume for the fiscal year ending May 31, 2023 was approximately 3.05 billion.
Amazon has outperformed both companies in terms of residential deliveries, but it lacks its global reach and comprehensive service offerings. JPMorgan analysts noted that Amazon excels in its one-way delivery network, ensuring quick delivery of goods. However, the company still lacks its competitors’ extensive pickup and delivery networks.
Amazon launched a significant initiative in 2018 to expand its logistics network. The company launched a program that allows entrepreneurs to start their own Amazon package delivery franchises for as little as $10,000. Local routes are handled by contractors in this model, which is similar to FedEx’s Ground unit. Amazon significantly expanded its logistics capabilities, including a network of approximately 200,000 drivers in the United States, which aided in rapidly increasing the number of packages it could deliver on a daily basis.
Furthermore, Amazon took advantage of the pandemic’s early stages to expand its e-commerce and logistics operations. Between the start of the pandemic and late 2021, the company opened hundreds of new warehouses, sorting centers, and other logistics facilities, nearly doubling the size of its network.