Amazon may soon smash UPS and FedEx at their own game, as the e-commerce company is projected to overtake UPS and FedEx as the US’s largest parcel delivery provider next year.
According to CNBC, Amazon’s global consumer business CEO, Dave Clark, spoke to the press in an interview on Squawk Box, revealing that the company is set to overtake its old competitors in the shipping industry, saying:
“We expect we will be one of the largest carriers in the world by the end of this year. I think we’ll probably be the largest package delivery carrier in the U.S. by the time we get to the end of the year, if not in early ’22.”
Taking on the role of a delivery service
While Amazon used to rely on third-party delivery providers to get its products to customers, after a holiday meltdown in 2013, the business decided to beef up its logistics and fulfillment operations.
According to a separate CNBC article, the firm now has 400k delivery drivers, 40k semi-trucks, 30k vans, and a fleet of over 70 planes throughout the world to ensure that its clients receive their items on time. In addition, Amazon has established warehouses and air hubs across the United States to reduce product delivery times.
Because of the pandemic, global supply chain concerns, and labour shortages, the corporation has begun transporting items to different ports to avoid blocks like those currently occurring in Los Angeles and Long Beach, California. Despite the fact that other merchants have struggled during the epidemic, Clark told CNBC that Amazon is well equipped to weather the storm, saying:
“These things don’t happen overnight. We’ve been building the logistics infrastructure, the technology platform that drives it, for two decades now, so we walked into the pandemic in a really good place.”
With Amazon on track to overtake UPS as the nation’s largest delivery service next year, the corporation may ultimately allow customers to ship products to others using its existing infrastructure.