Amazon announced on Thursday (Dec. 19) it expects to deliver 3.5 billion customer packages worldwide this year through its delivery network and expects to deliver an additional 200 million parcels before the end of the year.
Amazon also said it employs 800 third-party courier companies, also known as “delivery service partners” by Amazon that manage 75,000 drivers. The company now has 150 U.S. delivery stations employing more than 90,000 people.
Amazon Logistics’ revenue share of its orders doubled in 2019.
Amazon Logistics delivered nearly 20 percent of its packages last year and almost 46 percent in 2019 through August, accounting for a total of 2.5 billion parcels in 2019, according to an analysis released last week Thursday (Dec. 12) by Morgan Stanley.
Morgan Stanley estimated 6.5 billion packages would move within Amazon’s delivery network by 2022, far exceeding forecasts of 5 billion at UPS and 3.4 billion at FedEx, according to Reuters.
“Amazon’s transportation network is built on a foundation of 20 years of operations and logistics experience, an unwavering commitment to safety, technological innovation, and talented teams who are obsessed with delivering for our customers,” said Dave Clark, Amazon’s senior vice president of worldwide operations in a statement.
“Thanks to these great teams we’ve delivered 3.3 billion customer packages worldwide this year and are on track to deliver 3.5 billion packages by the end of the year. These are big milestones on behalf of our customers.”
Competition between Amazon, UPS and FedEx has significantly increased this past year. By building up its internal delivery network, the e-commerce giant has gradually distanced itself from its rivals.
Amazon will deliver astonishing growth this year. With a growing network of vans, trucks, and delivery planes, competitors are likely to have a further long-term threat from Amazon.
Although Amazon’s parcel volume was lower than FedEx and UPS this year, Morgan Stanley expects Amazon Logistics will overtake its competitors in 2022.
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