Amazon takes over the last mile and everything else.
by Wolf Richter
Wolf Street
Amazon just gave us an update on how rapidly its own delivery system is replacing UPS, the US Postal Service, FedEx, and other carriers in delivering packages from an Amazon fulfillment center to the door of Amazon’s customer.
The numbers show how big this system is already after practically no time of starting it up, how big the package volume is already, and how many drivers are already working in this system.
This has huge consequences for the US logistics business, the companies that slug it out in it, such as UPS and FedEx, and that keep raising their published rates despite the dynamics of the market, which is facing Amazon’s creation, the mushrooming companies that Amazon is building up to get around the established carriers. Its purpose is twofold: