Amazon is set to deliver its customer packages of up to 3.5 billion through its own in-house delivery network this year.
Amazon has long been regarded as a long-term threat to United Parcel Service Inc (UPS) and FedEx Corp due to its growing network of delivery trucks, vans, and planes.
FedEx has ended its relationship with the world’s largest online retailer just this summer. Meanwhile, UPS continued delivering almost half of Amazon’s packages all throughout the world.
According to analysis from Morgan Stanley, there is an estimated 20% of packages delivered through Amazon logistics last year. In the start of 2019 until August, 46% of packages were delivered through the said network.
Morgan Stanley estimated that Amazon’s delivery network will attain up to 6.5 billion packages by the year 2022, which is more than the deliveries of UPS, at 5 billion, and FedEx, at 3.4 billion.
Currently, Amazon has over 150 delivery stations in the US, with over 90,000 employees.