So far in 2023 until before Thanksgiving, the company owned by Jeff Bezos had already distributed more than 4.8 billion packages in the US.
amazon officially became the package delivery company largest in the United States, surpassing United Parcel Service (UPS) and Federal Express (FedEx) in terms of package volume. In 2022, the giant of e-commerce shipped more packages to homes nationwide than UPS, leaving FedEx behind as early as 2020, and the gap is expected to widen even further this year.
So far in 2023 until before Thanksgiving, the company owned by Jeff Bezos It had already distributed more than 4.8 billion packages in the national territory and plans to reach close to 5.9 billion by the end of the year according to internal data, reported The Wall Street Journal (WSJ). By comparison, UPS has reported that its volume this year will not exceed last year’s 5.3 billionincluding deliveries through the postal service.
For its part, FedEx reached approximately 3.05 billion packages in its fiscal year ended May 31, 2023. Both companies’ strategies have shifted toward shipping more profitable packages, rather than the volume competition.
Amazon’s hegemony
amazon strengthened his position in it logistics sector by developing one of the distribution networks largest in the world, contrary to the previous expectations of industry leaders such as Fred Smith, former CEO of FedExwho in 2016considered “fantastic” the idea that amazon could pose a threat to large logistics companies.
However, the company has significantly increased its delivery capacity through a franchise program for local routes and the accelerated expansion of its network. A key player in this evolution has been Dave Clark, former consumer CEO and architect of Amazon’s logistics network, as published by the Journal.
Since the implementation in 2018 of the program that allows entrepreneurs to start their own Amazon package delivery franchise with an investment of around US$10,000, the company has added approximately 200,000 drivers in the United States to its network.
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This model, similar to that of the Ground unit of FedExcontributed to the speed with which amazon make your daily shipments, according to former executives of the firm. During the start of the pandemic, amazon almost doubled the size of its network with the opening of hundreds of new ones wineries and Distribution centerstaking advantage of this situation to expand its reach in the e-commerce.
In a strategy to optimize delivery times and profitability, amazon regionalized its logistics network, reducing the distance traveled by packages within the United States. “These improvements in delivery speed have been a key driver of growth and are resulting in greater purchasing frequency by our Prime members,” said Brian Olsavsky, Amazon’s chief financial officer, in a recent company meeting. for him WSJ.
Source: Ambito
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