Amazon gains on UPS in package delivery volume
Amazon’s package delivery business is closing in on UPS.
Why it matters: Amazon’s shipping division, Amazon Logistics, already surpassed FedEx in terms of market share by volume in 2020.
Catch up quick: Amazon Logistics last year held a 22% share of the parcel delivery market (by volume) compared to UPS at 24%, according to a new Pitney Bowes report out today.
- Yes, but: In terms of revenue, Amazon Logistics commands just 12% of the market compared to FedEx (33%) and UPS (37%).
Be smart: Amazon Prime free shipping limits the company from making the same kind of profits per package as the two legacy carriers, Modern Retail notes.
What to watch: Amazon says it wants to invest $1 billion in other logistics companies as part of a new venture program, the Amazon Industrial Innovation Fund.