Amazon says it expects to become the largest express delivery company in the United States by early 2022!

It is learned that according to foreign media reports, Dave Clark, CEO of Amazon's global consumer business, said on Monday that the company is expected to surpass UPS and FedEx in early 2022 to become the largest express delivery company in the United States.

Over the past decade, Amazon has been quietly building a logistics empire. In addition to signing exclusive agreements with a large number of outsourcing companies, Amazon also operates its own logistics network of cargo planes, trucks and ships, and has opened warehouses and air hubs across the United States.

According to statistics, Amazon's global shipping costs increased 15 times between 2009 and 2018, while net sales increased 7 times. Due to the continuous increase in shipping costs, the company decided to move most of its logistics network in-house.

But Amazon's logistics ambitions have angered competitors, led by FedEx. Amazon is one of FedEx's largest customers, and according to estimates by Moody's Investors Service, the carrier delivered about 200,000 Amazon packages per day in 2018 until FedEx announced in 2019 that it would no longer work with Amazon. According to Insider, Amazon was almost one of FedEx's least profitable customers at the time, because Amazon's mostly small packages were far less profitable than large commercial orders.

In addition, Amazon has been continuously absorbing talent from FedEx. Between 2012 and 2018, hundreds of senior FedEx employees moved to Amazon, a move that further boosted Amazon's freight business.

According to Pitney Bowes, in 2020, Amazon handled 4.2 billion packages, exceeding FedEx's 3.3 billion, and there are even signs of catching up with UPS: in 2020, Amazon's package share in the United States was 21%, only a slight gap of 3% from UPS.

Editor✎Irene/

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