Amazon expects to deliver more packages than UPS and and FedEx by 2022 at the very latest, according to an Amazon executive.
“We expect we will be one of the largest carriers in the world by the end of this year,” Amazon world wide consumer business chief executive Dave Clark told CNBC.
“I think we’ll probably be the largest package delivery carrier in the US by the time we get to the end of the year, if not in early ’22.”
The ecommerce giant has quietly been assembling its logistics empire over the past 10 years, with divisions covering delivery by air, local delivery companies and fulfilment centres.
Rising global shipping costs prompted Amazon to move a large chunk of its parcel deliveries in-house.
The company’s worldwide shoppings costs grew fifteen-fold between 2009 to 2018 as its net sales boomed seven-fold.
The company’s chief financial officer Brian Olsavsky in 2019 said that the company believes it can transport its own packages more efficiently and more cheaply than third parties can.
Amazon was one of FedEx’s largest clients, carrying around 200,000 Amazon parcels every day in 2018, according to figures from Moody’s Investor Service.
However, in 2019, the shipping expert announced it would no longer delivery packages from Amazon.
Experts believed that at the time, Amazon was one of FedEx’s least profitable customers due to the high volume of small, residential deliveries as opposed to a large, lucrative business contract, according to Business Insider.