Amazon makes clear it's now competing with shippers like FedEx and UPS in its annual filing

ronjor · Feb 5, 2019

Eugene Kim @eugenekim222 05 Feb 2019

Amazon added “transportation and logistics services” to its group of competitors for the first time in its annual filing last week.
The new language shows how Amazon’s growing shipping and delivery services are no longer just a small part of its business.
The change follows Amazon’s disclosure to call itself a “transportation service provider” for the first time in 2016.
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ronjor · Feb 15, 2019

Amazon is rapidly expanding its air fleet to handle more of its own shipping, but FedEx isn't worried

Katie Schoolov 15 Feb 2019
According to Wolfe Research, the e-commerce giant is now handling its own shipping for 26 percent of online orders. In a December press release, Amazon said that it can "transport hundreds of thousands of packages per day" with its new "dedicated air network" and that its fleet of planes make "two-day shipping possible almost anywhere in the U.S."
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ronjor · Jun 7, 2019

FedEx will no longer provide express shipping for Amazon in the U.S.

Eugene Kim @eugenekim222 07 June 2019
FedEx announces Friday that it won’t renew its express U.S. shipping contract with Amazon.
The move comes as Amazon is more aggressively building out its own shipping and delivery network.
Amazon accounts for less than 1.3% of FedEx’s total revenue in 2018.
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guest · Jun 24, 2019

FedEx lures online sellers with two-day air shipping at ground rates after Amazon contract ends
June 24, 2019
https://techcrunch.com/2019/06/24/f...g-at-ground-rates-after-amazon-contract-ends/

FedEx is now offering the same two-day express air shipping direct to some customers for the same price it usually charges for ground service, which is typically much less expensive, the New York Times reports.
Note that FedEx will still act as a carrier for Amazon even once its Express contract comes to an end this month, providing last-mile ground shipping.

Meanwhile, Amazon is expanding its own cargo air fleet, with 15 more planes joining its network and a goal of operating a total of 70 planes by 2021. Amazon launched Prime Air in 2016 to help increase its delivery speed to customers, and has been building out the network ever since.
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ronjor · Jun 26, 2019

Amazon is going to deliver a blow to FedEx, which just lost $2 billion

David Koenig, Associated Press Published 9:09 p.m. ET June 25, 2019
FedEx Corp. announced a fourth quarter loss of just under $2 billion.
The company anticipates losses in the next year due to the departure of Amazon as a partner as well as slowing growth in the world economy.
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ronjor · Jul 24, 2019

Amazon reportedly buys another 2,200 delivery vans

By Corinne Reichert July 24, 2019
The online retail giant is ramping up for more deliveries.
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ronjor · Aug 7, 2019

FedEx Ends Ground-Delivery Deal With Amazon

By Thomas Black
August 7, 2019, 8:00 AM EDT
Courier says it’s focusing on ‘broader e-commerce market’
Domestic air deal between the two companies already expired
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guest · Aug 9, 2019

FedEx-Amazon Split Will Provide a Shipment Windfall for Rivals
August 8, 2019
https://www.wsj.com/articles/fedex-...de-a-shipment-windfall-for-rivals-11565302943

FedEx Corp. ’s split with Amazon.com Inc. is expected to deliver a holiday e-commerce boost to rival United Parcel Service Inc., the U.S. Postal Service and regional package carriers as other providers pick up the slack.
Regional delivery operators like OnTrac and LaserShip Inc. could also get a holiday bump from overflow volumes, they said.

“I think Amazon is going to have a little bit of a scramble to fill some of these voids, but there certainly is plenty of capacity in the industry,” said Tim Sailor, founder and principal of Navigo Consulting Group Inc., which advises businesses on shipping costs.
Picking up those extra Amazon volumes will heighten carriers’ risks should the online retailer take more business in-house in the future, said Jerry Hempstead, a former parcel-industry executive [...]

“I’m sure that long-term UPS will be handling less packages,” Mr. Hempstead said. “If Amazon has a truck coming to my house, why would they pay UPS to do that?…They have their own trucks now, they have their own planes, and the writing’s on the wall.”
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guest · Aug 9, 2019

mood said: ↑

[...] Shipment Windfall for Rivals
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USPS reports decline in package shipments as Amazon brings more deliveries in-house
August 9, 2019
https://www.zdnet.com/article/usps-...ts-as-amazon-brings-more-deliveries-in-house/

The US Postal Service (USPS) reported a volume decline in package shipments during its fiscal third quarter, citing "intense competition" from "certain major customers" that have formed in-house last-mile delivery services. According USPS CFO Joe Corbett, this is the carrier's first quarterly volume decline for packages in nine years.

As for the USPS, the carrier so far has not signaled that it will follow FedEx in a move away from Amazon. Nonetheless, it's clear that all of the key logistics players are realizing and responding to the looming Amazon threat.
On a call with reporters, Postmaster General Megan Brennan noted the increase in competition but said her agency is still well positioned to grow its shipping and packages category due to its service predictability, high visibility and low price point.

"We're out there competing for business every day," Brennan said.
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guest · Dec 13, 2019

Amazon is delivering half its own packages as it becomes a serious rival to FedEx and UPS
Amazon Logistics keeps growing at a rapid clip
December 13, 2019
https://www.theverge.com/2019/12/13...dex-ups-package-delivery-more-than-50-percent

Amazon has been steadily growing its logistics operation over the last decade, and it now delivers more than half of all Amazon packages in the US, according to an estimate from Morgan Stanley published on Thursday and reported by CNBC. That’s a staggering increase over the course of the last few years.

At the current rate, Amazon is set to pass both FedEx and UPS in US package volume, with the company currently delivering 2.5 billion packages per year compared to FedEx’s 3 billion and UPS’s 4.7 billion, Morgan Stanley says. Amazon’s number doubled in just the last year alone, from delivering about 20 percent of all of its own packages to now about half.
But for Amazon, it’s a worthwhile expenditure if it means it can control the entire delivery chain from start to finish. At the appropriate scale, that would start saving Amazon money and allow it to become even more efficient at delivering products.
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guest · Dec 20, 2019

Amazon’s new area of domination: its own package delivery
That growth has come with controversy
December 19, 2019
https://www.vox.com/recode/2019/12/19/21029932/amazon-logistics-delivery-network-fedex-ups-usps

There’s a reason your Amazon deliveries are increasingly showing up in an Amazon-branded van: The company’s own delivery network is already monstrous, and growing fast.

The online retail giant announced on Thursday that its Amazon Logistics division was on track to deliver 3.5 billion packages globally in 2019 — which accounts for approximately half of all of its worldwide orders, according to a spokesperson. (For comparison, UPS, which was founded 112 years ago, delivered 5.2 billion packages and documents for all of its customers in 2018.)
The huge growth of this new business line highlights the rapid pace at which Amazon is maneuvering its way into new corners of its customers’ lives.
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Amazon: Amazon Has Enabled Hundreds of Small Businesses and Created Over 100,000 Jobs Across Its Last Mile Delivery Network

ronjor · Jan 14, 2020

Amazon lifts FedEx ground-delivery ban for sellers, FedEx shares rise

Annie Palmer@annierpalmer Jan 14 2020
Amazon informed third-party sellers that they can resume using FedEx's ground-delivery shipping services.
Last month, Amazon temporarily suspended FedEx's ground delivery for Prime shipments, citing poor delivery performance.
The decision caught some third-party sellers off guard during the busiest shopping period of the year.
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guest · May 15, 2020

USPS reportedly reassessing last-mile delivery deals with companies like Amazon
May 14, 2020
https://techcrunch.com/2020/05/14/u...le-delivery-deals-with-companies-like-amazon/

In a time when package deliveries are more essential than ever, the future of the United States Postal Service is very much in limbo.
Now, as the Postal Service attempts to reconcile with its future, it has reportedly sought to work with outside consulting firms to reassess its last-mile delivery contracts for the company, as well as parcel services like FedEx and UPS. The strategy was reported by The Washington Post, citing a half-dozen anonymous sources.
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