Amazon to become largest delivery service by 2022 – Media Play News
November 29, 2021
Amazon says it expects to become the largest delivery service in the United States by 2022, overtaking longtime major carriers FedEx and UPS.
At the end of 2019, UPS was the largest parcel carrier in the United States, with sales of $ 84.6 billion in 2020.
Speaking on November 29, CNBCDave Clark, CEO of Global Consumer at Amazon, said the e-commerce giant continues to gradually deliver its own orders rather than relying on third-party services. The company now has its own fleet of cargo trucks, vans and airplanes.
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Bank of America analysts say Amazon delivered 66% of its own orders to consumers last August, up from 58% at the end of 2019.
“We anticipate that we will be one of the largest carriers in the world by the end of the year,” Clark told “Squawk Box”. “I think we will probably be the largest parcel carrier in the United States by early 2022.”
Amazon in 2019 quietly became Mercedes’ biggest customer for Sprinter vans – a fleet the company now uses to deliver orders to consumers on the last mile.
“These things don’t happen overnight,” Clark said. “We’ve been building the logistics infrastructure, the technology platform that drives it, for two decades now, so we’ve entered the pandemic in a very good place.”