Amazon said it will have delivered a total of 3.5 billion parcels throughout 2019, smashing estimates to become its own largest delivery company.
Throughout 2019 the online retailer has piled billions of dollars into its Amazon Logistics delivery arm, attempting to remove its reliance on third party companies like FedEx and UPS.
This strategy has reportedly paid off and Amazon now delivers “approximately half” of all its own deliveries, more than doubling from last year when it handled just 20 per cent of deliveries of items sold on its platform.
Morgan Stanley has estimated that Amazon Logistics will deliver 6.5 billion packages by 2022, exceeding its largest rivals UPS and FedEx, expected to deliver 5 billion and 3.4 billion respectively.
Amazon now reportedly has 150 delivery stations across the US, employing nearly 100,000 people.
Earlier this month Amazon announced it was banning all of its third-party sellers from using FedEx’s ground-delivery service on “some of the highest demand shipping days in history”, marking its latest move to reduce reliance on third party companies.
This came after the pair announced their ground-delivery contract would not be renewed in August, two months after FedEx announced its Express unit would also delivering Amazon packages.