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Amazon Logistics is growing in the US as it delivers half of its own packages now



One of the best e-commerce companies in the world is undoubtedly Amazon which has been around for a long time and shows no sign of falling. While we can say that for Amazon, we were not able to say that for its logistics business. Because while Amazon delivers most of its packages in markets such as India and others, its logistics lacked in the US which is also its home. But a new report has emerged which shows that Amazon Logistics is now growing in the US as well.

Amazon Logistics is growing in the US as it delivers half of its own packages now

CNBC published a report from Morgan Stanley on Thursday revealing that they estimate Amazon to be delivering half of their packages in the US through their own logistics. This means that the company is not relying on delivery partners such as FedEx and UPS to get its parcels delivered to the US customers. Also, the firm estimates that Amazon Logistics will be able to handle 6.5 billion packages per year by 2022 which is far more than UPS at 5 billion packages per year and FedEx at 3.4 billion packages per year. This shows that the logistics firm from Amazon is also on course to replace other logistics firms after it did the same for other e-commerce platforms.

As per the report, Morgan Stanley reveals that “Our AlphaWise analysis shows that Amazon Logistics already delivers ~50% of Amazon US volumes, focused on urban areas,”. The firm also mentions that Amazon Logistics “more than doubled its share” in just a year which was just 20% a year ago to currently shipping 2.5 billion packages per year. This new report also falls in line with the predictions from analysts who say that Amazon will be the most important company in the 2020s which means that it all depends on how the e-commerce giant can handle the pressure in the next decade.