Amazon’s logistics business has been steadily growing in the past 10 years, and the company currently delivers more than half of all Amazon packages in the United States. This has been an amazing growth over the past few years.
This means that Amazon, which currently has its own cargo aircraft and fleet, is fighting to own the entire logistics chain and ending its cooperation with companies such as FedEx and UPS.
Morgan Stanley pointed out that at the current rate, Amazon’s package delivery in the United States will exceed FedEx and UPS, and the company currently delivers 2.5 billion packages per year, compared with 3 billion and 4.7 billion FedEx shipments, respectively. Pieces. Last year alone, Amazon’s package delivery volume has grown from 20% to half of what it is now. One of the important reasons is the one-day Prime delivery campaign launched earlier this year by Amazon, which promises to serve more markets and more products over time.
For Amazon, this service will not only deliver more packages to more customers at a faster rate, it will also cover products from the Amazon factory or Amazon subsidiary to the so-called last-mile Home delivery, which is particularly difficult for commercial companies to overcome.
Sending packages to consumers’ homes is also the main reason Amazon has paid FedEx and UPS for tens of billions of dollars over the years, and it’s also why they are keeping away from these types of contracts.