November 29, 2021
Amazon Exec: We’ll Surpass UPS, FedEx
Amazon believes it will become the largest package delivery service in the U.S. by early 2022.
Move over UPS and FedEx.
So says Dave Clark, CEO of Amazon’s consumer business, who on Monday, Nov. 29, forecast that Amazon will be the largest package delivery service in the United States come 2022.
“We expect we will be one of the largest carriers in the world by the end of this year,” Clark told CNBC’s Becky Quick in an interview on “Squawk Box.” “I think we’ll probably be the largest package delivery carrier in the U.S. by the time we get to the end of the year, if not in early ’22.”
In the last two years, Amazon has nearly doubled the size of its fulfillment network, The Wall Street Journal reported.
Keen to assert maximum control over the shipping process, Amazon has built more than 450 new facilities around the United States to store, sort and ship products, according to MWPVL International, a logistics consultancy.
That includes opening, by year’s end, about 30 facilities that serve as both fulfillment and delivery locations, which can hold approximately three million items each. In all, Amazon is believed to have more than 930 facilities across the country.
Amazon is also continuing to build a vast network of in-house-owned planes, trucks and ships, and currently controls thousands of last-mile delivery companies that transport solely for the Seattle-headquartered multinational technology company, whose business spans everything from ecommerce and cloud computing, to logistics and artificial intelligence.
Bank of America estimates that Amazon delivered 58% of its own packages in 2019. As of last August, the firm was reportedly delivering 66% of its own packages.
“These things don’t happen overnight,” Clark told CNBC. “We’ve been building the logistics infrastructure, the technology platform that drives it, for two decades.”