Monday, October 26, 2020
Home Lead Story Amazon Delivers 50% of Packages itself Now: Report

Amazon Delivers 50% of Packages itself Now: Report

Amazon's deliveries will probably reach 6.5 billion by 2022 for $10 a package, the analysts said

In a serious threat to package delivery giants like FedEx and UPS, Amazon is now delivering 50 per cent of its packages itself especially in the urban centres globally, media reported.

According to Morgan Stanley estimates reported first by CNBC, analysts estimate Amazon Logistics — the company’s in-house shipping and delivery service — will soon overtake UPS and FedEx in the total volume of packages delivered in the US.

Jeff Bezos-led company still relies on third-party couriers for last-mile deliveries in rural regions.

Amazon Logistics now ships more than 2.5 billion packages a year in the US, while FedEx ships 3 billion and UPS delivers 4.7 billion.

Amazon’s deliveries will probably reach 6.5 billion by 2022 for $10 a package, the analysts said, meaning a massive loss of $65 billion in revenue for UPS, FedEx and the US Postal Service.

Amazon’s number doubled in just the last year alone, from delivering about 20 percent of all of its own packages to now about half (46 per cent).

After losing air-shipping contract of global courier company FedEx amid competition, e-commerce major Amazon has added 15 cargo aircraft to its fleet, aiming to reach 70 planes by 2021.

Amazon
In a serious threat to package delivery giants like FedEx and UPS, Amazon is now delivering 50 per cent of its packages itself especially in the urban centres globally, media reported. Pixabay

In a bid to expand its airborne ambitions, e-commerce giant Amazon is investing $1.5 billion in building a three million square-foot Prime Air airport outside Cincinnati in Kentucky as a parking garage for a 100 cargo jets.

ALSO READ: Whatsapp Releases a New Beta with Many Tweaks

“We’re investing $1.5 billion in our new air hub to get you your packages faster. Three million square feet, and it’s going to create 2,000 jobs. And if you’re guessing that driving a front loader was fun, you’re right! #amazon #prime,” Bezos tweeted recently.

Amazon has a few dozen planes flying several hundred flights per week while UPS and FedEx have hundreds of planes flying thousands of flights. (IANS)

STAY CONNECTED

19,120FansLike
362FollowersFollow
1,779FollowersFollow

Most Popular

Here are Some Curated Gifts for the Festive Season

The onset of festive season sets in place an atmosphere bustling with joy, togetherness, lights and of course, gifts. It is undoubtedly the most...

Supplement without Testing Vitamin D and B12 Can Be Harmful

A blood test can determine whether you are deficient in any vitamins or not. Many people self-medicate or take dietary supplements for vitamin deficiencies....

COVID Interventions Can Reduce Infection Rates: Study

Non-pharmaceutical interventions such as voluntary shelter-in-place, quarantines, and other steps taken to control the novel coronavirus can reduce the peak number of infections, daily...

Few Steroids Boost Survival of Premature Babies in India: WHO

Antenatal steroids such as dexamethasone, used to treat many conditions, including rheumatic problems and severe COVID-19, can boost the survival of premature babies when...

Enterprises to Put Artificial Intelligence to New Frontiers in 2021

In 2021, one in four forward-thinking enterprises will push Artificial Intelligence to new frontiers, such as holographic meetings for remote work and on-demand personalised...

A Temple in Kanpur Worships Ravan on Dusshera

Even as the rest of India prepares to burn effigies of Ravan as a symbolic victory of good over evil, devotees are quietly lining...

Researchers Discover New Mechanism Causing Alzheimer’s Disease

Japanese researchers have discovered a new mechanism by which clumps of tau protein -- found in brain cells -- are created in the brain,...

New Model Predicts Risks of Developing Irregular Heartbeat

A new model that uses machine learning, which is a type of artificial intelligence, may help predict which patients with kidney disease are at...

Recent Comments