Dave Clark, CEO of Amazon, said Monday that the company is poised to become the largest package delivery service in the United States by early 2022, surpassing rivals UPS and FedEx.
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“We expect to be one of the largest carriers in the world by the end of this year,” Clark said in an interview. “I think we’ll probably be the largest package delivery service in the U.S. by the end of the year, if not early ’22.”
Amazon has been developing its logistics and fulfillment businesses, following the 2013 fiasco, when its customers were late receiving their packages containing items they had ordered for Christmas.
The company wants to get more aggressive in the delivery, so it can have more control over how shoppers' packages arrive at their doorsteps. Amazon now oversees thousands of delivery companies that deliver packages exclusively for Amazon, as well as an internal network of planes, trucks and ships. It has also filled the country with warehouses and air hubs.
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Analysts and investors have long predicted that these tools and actions will allow Amazon to one day compete with large package delivery companies like UPS, FedEx, and the U.S. Postal Service.
The company's delivery business is growing rapidly. For the past two years, Amazon has been delivering the majority of its packages itself.
The internal operations related to package delivery are acting as a significant asset during this year's holiday season, which is being challenged by the ongoing coronavirus pandemic, global supply chain crisis, and labor shortages.
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Clark is very optimistic about Amazon's potential.
“These things don’t happen overnight,” Clark said. “We’ve been building the logistics infrastructure and the technology platform that coordinates it for two decades.”
Source: CNBC
