- 25 October 2021
- Transport / Logistics Services
Pitney Bowes has shown that Amazon Logistics is taking lumps out of the delivery market share of US duopoly FedEx and UPS.
According to the Pitney Bowes parcel shipping index, Amazon Logistics share of parcel volumes has grown to 21% in 2020, taking it ahead of FedEx and just behind UPS.
All last mile delivery companies saw strong growth during the pandemic but Amazon grew far more quickly than other companies every year since 2014.
“It is a time of disruption, which is providing opportunities across the board for lots of different types of players who you haven’t seen in this space before, from Amazon Logistics all the way down to the last-mile delivery, crowdsourcing engagements that are starting now,” said Jason Dies, executive vice president and president of sending technology solutions at Pitney Bowes.
The online giant is one of four companies in the US – FedEx, UPS and the US Postal Service – that now handle 99% of all deliveries by volume in the US. All other carriers, including the larger regional players, take just 1% of the remaining volumes.
According to Dies, market share isn’t everything. UPS and FedEx are becoming more selective as to what parcels they take through their systems (largely focusing on B2B), while Amazon’s priority is its in-house volumes. Smaller firms like Pitney Bowes can take advantage of this, with the company recently announcing it would only deliver lightweight parcels.
“We’ve found a way to pick retailers and providers that meet our criteria of what we think we can be effective in delivering,” Dies said. “And so you’re going to continue to see that happen, I think, across the industry as people carve out where they think they can play most effectively.”