Amazon is Now a Bigger Shipper in the US than FedEx
Logistics is a $1.5 trillion business -- and it has long been controlled by a handful of key players, like FedEx, UPS and the U.S. Postal Service. Now Amazon is poised to conquer it. Amazon has 21% of the U.S. shipping market -- right behind UPS (24%) and ahead of FedEx (16%). The USPS remains dominant with 38%, and all other shippers account for just 1% of the market, according to Pitney Bowes, which tracks the global shipping and e-commerce industry. Amazon's rise is remarkable, as it had zero share of the U.S. shipping market as recently as 2014, and it relied on legacy shippers like FedEx and UPS for all of its deliveries. Since then, Amazon has poured resources into building a network of warehouses, trucks, planes and delivery drivers. As it strengthened its own shipping arm, Amazon took its business away from the other shippers. Now, the company is turning shipping from a cost to a source of revenue by offering its logistics capabilities as a service.
Logistics is a $1.5 trillion business -- and it has long been controlled by a handful of key players, like FedEx, UPS and the U.S. Postal Service. Now Amazon is poised to conquer it. Amazon has 21% of the U.S. shipping market -- right behind UPS (24%) and ahead of FedEx (16%). The USPS remains dominant with 38%, and all other shippers account for just 1% of the market, according to Pitney Bowes, which tracks the global shipping and e-commerce industry. Amazon's rise is remarkable, as it had zero share of the U.S. shipping market as recently as 2014, and it relied on legacy shippers like FedEx and UPS for all of its deliveries. Since then, Amazon has poured resources into building a network of warehouses, trucks, planes and delivery drivers. As it strengthened its own shipping arm, Amazon took its business away from the other shippers. Now, the company is turning shipping from a cost to a source of revenue by offering its logistics capabilities as a service.
