- 1 December 2021
- Transport / Logistics Services
Amazon’s worldwide consumer CEO Dave Clark has told CNBC’s Squawk Box that Amazon is to be the largest US parcel carrier by the end of 2022. On its way to becoming one of the world’s largest logistics companies it will overtake UPS and FedEx in terms of US parcel volumes.
“We expect we will be one of the largest carriers in the world by the end of this year,” Clark told CNBC’s Becky Quick in an interview on Squawk Box. “I think we’ll probably be the largest package delivery carrier in the U.S. by the time we get to the end of the year, if not in early ’22.”
Amazon moved into logistics after a fiasco in 2013 where many parcels weren’t delivered on time (or at all) thanks to the retail arm’s dependence on third party carriers. Greater control of the supply chain is meant to prevent such issues from arising in future. It now subcontracts to thousands of last-mile delivery firms that deliver exclusively for the online giant. In addition it has a growing middle-mile network of HGVs, ships and aircraft.
As a result, Bank of America now estimate that in 2021, Amazon Logistics delivered 66% of it items bought via Amazon, a growth of 8% on 2019. Clark said to CNBC that this is planned to grow even further:
“These things don’t happen overnight,” Clark said. “We’ve been building the logistics infrastructure, the technology platform that drives it, for two decades now, so we walked into the pandemic in a really good place.”