Amazon to Take Top Package Delivery Spot From Rivals FedEx, USPS, UPS

Move over UPS, FedEx and USPS. By early next year, Amazon will be the largest delivery service in the U.S., according to Amazon CEO of worldwide consumer service Dave Clark in a Monday (Nov. 29) report from CNBC. 

Clark said the company, equipped with its fleet of planes, trucks, vans and ships, is on track to surpass the competition to become the largest delivery service. 

Also on Monday (Nov. 29), Amazon announced that it had opened more than 450 fulfillment centers, nearly doubling the number of sites available to handle and ship goods.

Read more: Amazon Doubles Fulfillment Network to Fast-Track Holiday Delivery

Known for its fast delivery via two-day Prime shipping, more than 98% of packages entering Amazon’s delivery centers as of mid-November were delivered the following day, according to ShipMatrix data.  

The company has also hired more than 650,000 employees since the end of 2019, pushing its worldwide staff to more than 1.4 million, according to PYMNTS. 

Meanwhile, more consumers are relying on the eCommerce giant for their holiday shopping needs. Amazon saw “record-breaking” Black Friday sales, according to PYMNTS. In addition, nearly three-quarters of shoppers had started their holiday shopping prior to the official kickoff to the gift-buying season. 

See also: Amazon: Consumers Buy Clothes, Toys and Decor on ‘Record-Breaking’ Black Friday 

Bank of America analysts estimated that Amazon delivered more than half of its packages in 2019, according to CNBC.  

In another historic milestone, Amazon matched Walmart sales, according to a PYMNTS report last week. 

Amazon’s share of shoppers’ retail spending, at just under 9% as of the third quarter, is at roughly the same level as this time last year. However, Walmart has seen its share of retail spend decline by about 0.3% as compared to this time in 2020. 

Further underlining Amazon’s prominence, the company had just shy of a 4% share of retail spend five years ago. As of last year, Amazon’s reach more than doubled. 

Read more: AMZN vs WMT Weekly: Amazon Finally Matches Walmart for Consumer Retail Sales