Amazon delivered more packages to homes in the U.S. in 2022 than either FEDEX or UPS as they continued to evolve their strategy to expand their last mile logistics business.
Dana Mattioli, reporter at the Wall Street Journal and author of the upcoming book The Everything War: Amazon’s Ruthless Quest to Own the World and Remake Corporate Power estimates that approximately one-third of all purchases are made through Amazon and that there ability to bring efficiency by controlling the last mile delivery makes them a very formidable competitor.
Dr. Rick Geddes at Cornell University says that the addition of many contractors and franchisees has allowed Amazon to dramatically scale up its delivery business over the last 10 years and to surpass volumes delivered by UPS - a company more than 100 years old. UPS union drivers present some challenges to the company, especially when compared to the Amazon Contractor/franchisee relationship.