Amazon poised to pass UPS and FedEx to become largest U.S. delivery service by early 2022, exec says

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  • Dave Clark, Amazon’s CEO of the worldwide consumer, told Businesshala on Monday that the company is on track to become the nation’s largest delivery service by the end of 2021 or early 2022.
  • Analysts have long predicted that Amazon will overtake carriers like UPS, FedEx and the US Postal Service thanks to its in-house network of planes, trucks, vans and ships.

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Dave Clark, CEO of Amazon’s worldwide consumer business, said Monday that the company is poised to become the largest U.S. package delivery service by early 2022, overtaking longtime shipping rivals UPS and FedEx.

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“We hope to be one of the biggest carriers in the world by the end of this year,” Clarke told Businesshala’s Becky Quick in an interview on “Squawk Box.” “I think by the time we get to the end of the year, we will be the largest package delivery carrier in America, if not early ’22.”

Amazon has been steadily building out huge logistics and fulfillment operations as it left its packages stranded in the hands of outside carriers since the 2013 holiday.

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It aims to have greater control over how buyers’ packages reach their doorsteps. The retail giant now oversees thousands of last-mile delivery companies that deliver packages exclusively for Amazon, as well as a budding in-house network of planes, trucks and ships. It has also dotted the country with warehouses and air hubs that can pace with packages.

Analysts and investors have long predicted that those tools will enable Amazon to one day rival major carriers like UPS, FedEx and the US Postal Service.

Its shipping operations are growing rapidly. Analysts at Bank of America predicted that Amazon delivered 58% of its own packages in 2019, making it the fourth largest delivery service nationwide. digital commerce 360, As of last August, Amazon was estimated to deliver 66% of its own packages.

Amazon’s in-house delivery operations have turned out to be a big advantage during this year’s holiday shopping season, which has been particularly challenging due to the ongoing coronavirus pandemic, a global supply chain crisis and labor shortages.

In addition to leveraging its own trucks and planes, Clark said Amazon is shipping goods to new ports to avoid interruptions.

“These things don’t happen overnight,” Clark said. “We’ve been building the logistics infrastructure, the technology platform that drives it, for two decades, so we went into a really good place in the pandemic.”

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