Amazon Becomes the Largest Delivery Service in the US Surpassing UPS and FedEx

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Amazon Becomes the Largest Delivery Service in the US

In a significant milestone, Amazon has surpassed both UPS and FedEx to become the largest delivery business in the US,delivering more packages to consumers last year than UPS and leading FedEx since 2020.

The eCommerce giant is expected to further widen this gap in the coming years. By Thanksgiving this year, Amazon had delivered more than 4.8 billion packages in the US, and the company forecasts it will reach 5.9 billion by year’s end, up from 5.2 billion in 2022.

Amazon’s rise to the top comes as other logistics companies are facing challenges due to a weaker holiday shipping season and reduced consumer spending on goods. In response, both FedEx and UPS have been offering discounts to woo customers.

Meanwhile, Amazon’s rival Walmart is expanding its use of parcel stations in its stores to function as delivery hubs. The retail giant plans to have more than 40 parcel stations operational in stores by the year’s end, with many in service for the holiday season.

Walmart aims to extend this capability to more locations in 2024. These stations function “like a mini post office that receives and delivers packages,” said Jennifer McKeehan, senior vice president of transportation and delivery at Walmart US.

In its earnings call earlier this month, Walmart reported that in-store fulfilled pickup and delivery contributed to a 24% surge in eCommerce in the third quarter.

With Amazon’s continued growth and Walmart’s innovative approach to delivery, the US delivery landscape is undergoing a significant transformation.

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