The Group increases its independence
Amazon seems to be developing further and further in the USA. According to an estimate by Morgan Stanley, soon half of all Amazon packages will be delivered by the company itself. Compared to the previous year, when it was only 20 percent, this is an enormous change. This gives reason for various analysts to believe that Amazon Logistics will soon deliver more of its products itself than UPS and FedEX combined.
Amazon Logistics is designed for cities
The more Amazon expands this process, the more independent the Group is from logistic partners. Amazon itself currently delivers 2.4 billion packages, while UPS transports 4.7 billion and FedEx around three billion. This also includes packages that do not originate from Amazon.
Morgan Stanley is enthusiastic about Amazon Logistics efficiency. After all, the division is only one-fifth of the size of the competition. The reason for this is that Amazon Logistics is only designed for urban and suburban areas. Deliveries destined for rural areas are mostly handled by UPS and FedEX.
6.5 billion packages per year
Analysts have found that Amazon delivers 28 percent to cities, a full 61 percent to densely populated areas of major cities and 11 percent of Amazon Logistics packages go to rural areas. By comparison, the competition delivers 20 percent of its parcel volume to rural areas.
It is estimated that Amazon will deliver up to 6.5 billion packages per year by 2022 through Amazon Logistics. UPS is expected to deliver five billion packages and FedEx up to 3.4 billion. Not only deliveries for Amazon are considered, but those for the entire USA.
Source: www.kloepfel-consulting.com