May 23, 2022 - Economy
Amazon gains on UPS in package delivery volume
Add Axios as your preferred source to
see more of our stories on Google.
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.
