Amazon a threat to UPS in 2022?

US parcel delivery and technology giant Pitney Bowes has released research showing that Amazon Logistics is set to be a threat to UPS and FedEx in 2022.

The pandemic drove demand for parcel deliveries and it appears that the logistics arm of the online giant was well placed to take on the increased volume. Pitney Bowes has shown that its US parcel delivery volumes surpassed FedEx in 2021 and came close to those of UPS this year.

To meet demand Amazon Logistics has nearly doubled the size of its fulfilment network in the last 18 months, grown its freighter fleet and has launched a local delivery option for businesses in the US.

It hasn’t all been good news for Amazon. The Prime one-day delivery service didn’t achieve expectations in terms of volumes delivered on time during the pandemic, and labour shortages in the US have hampered its ability to grow as fast as it needs to.

The growth stems from Amazon seeking to take full control of its end-to-end logistics. It is by no means there now but could well make big strides towards that in 2022.

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