Amazon Formalizes Competition with Shippers

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1Q 2019 | IN-5428


Amazon versus Everyone Else


Amazon is driving at least 49% of the United States’ e-commerce sales. Notably, the company recently updated wording in its annual 10-Kto add companies that provide “transportation and logistics services" and detail “intense competition” from a number of companies.

Shippers like UPS, FedEx, USPS, and DHL make a combined US$5 trillion from U.S. commercial shipments using massive fleets of last-mile delivery vehicles; UPS has approximately 119,000 vehicles and FedEx has more than 160,000 vehicles. Since 2018, Amazon has quadrupled its own delivery vans to almost 20,000 vehicles, with reports of up to 7,500 trailers for moving products across its fulfillment centers and warehouses in use. Amazon expanded its Amazon Air fleet of 40 Boeing 767 cargo planes, with leases for at least 10 more (FedEx claims that it owns 678 planes and UPS owns 248), operating about 350 flights per week in 2Q 2018, and plans to open its own air hub in Kentucky in the next 2 years.

The firm also has ocean freight, smart lockers in numerous sites, and some options …

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