Amazon is Set to Pass UPS and Fedex as Largest Delivery Service

By early 2022, Amazon may be about to trump both UPS and FedEx and become the largest delivery service in the United States.

According to Dave Clark, Amazon’s CEO of worldwide consumer, who spoke to CNBC on Monday, the company is on track to become the nation’s largest delivery service by the end of 2021 or early 2022.

“We expect we will be one of the largest carriers in the world by the end of this year,” Clark told CNBC’s Becky Quick in an interview on “Squawk Box.” “I think we’ll probably be the largest package delivery carrier in the U.S. by the time we get to the end of the year, if not in early ’22.”

For years analysts have anticipated that Amazon would become a major rival to UPS, FedEx, and the U.S. Postal Service with its budding in-house network of planes, trucks and ships.

Bank of America analysts predicted that Amazon delivered 58% of its own packages in 2019, making it the fourth-largest delivery service nationwide, according to Digital Commerce 360. By last August of this year, Amazon was estimated to be delivering 66% of its own packages.

Clark said Amazon has been shipping goods to new ports to avoid blockages beyond leveraging its own trucks and planes

“These things don’t happen overnight,” Clark said. “We’ve been building the logistics infrastructure, the technology platform that drives it, for two decades now, so we walked into the pandemic in a really good place.”

Seeking Alpha recently reported that Amazon was in the market for long-range cargo jets to expand the company’s international delivery capabilities.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.