Amazon’s Remarkable Rise: Set to Outpace UPS and FedEx with 5.9 Billion Deliveries in 2023
In recent months, you may have noticed an increasing number of Amazon delivery trucks on the streets, and it’s not your imagination. Amazon is on track to deliver a staggering 5.9 billion packages this year, marking a remarkable 13% increase compared to the previous year’s total of 5.2 billion, as reported by the Wall Street Journal.
This delivery volume surpasses that of both UPS, which anticipates handling 5.3 billion packages this year, and FedEx, which delivered 3.05 billion packages in its last fiscal year. Notably, Amazon and FedEx ended their working relationship in 2019. It’s worth noting that the U.S. Postal Service still leads in parcel deliveries.
This represents a significant shift from a few years ago when Amazon relied heavily on its competitors for delivery services—a situation that leading delivery companies once considered unlikely to change. Former FedEx CEO Fred Smith, in a conference call with analysts in 2016, expressed skepticism about industry disruption, stating, “In all likelihood, the primary deliverers of e-commerce shipments for the foreseeable future will be UPS, the U.S. Postal Service, and FedEx.”
Amazon’s surge in delivery capabilities gained substantial momentum during the early stages of the pandemic. The company made substantial investments in expanding its network by opening new warehouses and logistics facilities, effectively doubling its operational footprint. Furthermore, Amazon enlisted the support of small businesses to enhance its delivery capacity while boosting their own revenues.
The company shows no signs of slowing down. Earlier this year, Amazon unveiled plans to double the number of its same-day delivery facilities in the United States. As of July 31 this year, Amazon reported having delivered over 1.8 billion units to Prime members in the U.S. with same-day or one-day delivery—a fourfold increase compared to the same period in 2019.
However, Amazon’s newfound leadership in parcel delivery has not come without challenges. Two years ago, the company settled for $61.7 million over allegations that it had underpaid drivers in its Amazon Flex program for tips received from customers over a 2.5-year period. Additionally, concerns have arisen among drivers regarding artificial intelligence cameras in their vehicles that continually monitor their activities during work.
Amazon’s ascent in the delivery industry is nothing short of remarkable, as it continues to redefine the landscape of e-commerce and logistics on an unprecedented scale.
Sources: AirGuide Business airguide.info, bing.com, apple.news, Amazon