Amazon on track to become largest delivery service in US by 2022, executive says – .

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Amazon on track to become largest delivery service in US by 2022, executive says – .


Dave Clark, CEO of Amazon’s consumer business, said on Monday the company is poised to become the largest package delivery service in the United States by early 2022, surpassing longtime rivals UPS and FedEx.
“We anticipate that 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 parcel carrier in the United States by the end of the year, if not early 22.”

Amazon has been building massive logistics and order fulfillment operations ever since a 2013 holiday fiasco left its packages stranded in the hands of outside carriers.

Its goal has been to have better control over how buyers’ packages arrive at their doorstep. The retail giant now oversees thousands of last mile delivery companies that deliver packages exclusively for Amazon, as well as a nascent internal network of planes, trucks and ships. It has also dotted the country with warehouses and air hubs that can speed up parcels.

Analysts and investors have long predicted that these tools would one day allow Amazon to compete with major carriers like UPS, FedEx, and the U.S. Postal Service.

Its shipping operations are growing rapidly. Bank of America analysts predicted that Amazon delivered 58% of its own packages in 2019, making it the fourth nationwide delivery service, according to Digital Commerce 360. As of August, it was estimated that Amazon delivered 66% of its own packages.

Amazon’s in-house delivery operations have become a major advantage during this year’s holiday shopping season, which has been particularly difficult due to the ongoing coronavirus pandemic, a tightening of the supply chain. globalization and labor shortages.

Beyond using his own trucks and planes, Clark said Amazon has been shipping goods to new ports to avoid blockages.

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

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