Source: Amazon
What you need to know
- Morgan Stanley estimates Amazon Logistics, the retail giant's in-house shipping solution, is now shipping 2.5 billion packages per year.
- That amounts to 50% of all its deliveries in the U.S.
- The investment bank also estimates that the company may overtake UPS to become the largest shipping service in the country by 2022.
Amazon is rapidly expanding its shipping capabilities, with Morgan Stanley estimating that the company has more than doubled shipments in the U.S. in the last year alone (via CNBC). Its in-house shipping wing now accounts for nearly 50% of all Amazon deliveries in the country this year, up from just 20% last year. To truly understand the scope of Amazon's operation, here's another statistic: the investment bank estimates Amazon is currently shipping at a rate of 2.5 billion packages per year, compared to an estimated 4.7 billion and 3 billion packages per year for UPS and FedEx, respectively.
A large part of this growth is focused on more densely populated urban areas, with Morgan Stanley attributing Amazon's burgeoning rise to its efficient use of technology. "To us, Amazon Logistics is already-large scale and with a fleet ~1/5 the size of competitors, it speaks to its ability to use density and technology to drive efficiency," said the bank.
It also expects Amazon Logistics to become the market leader in the U.S. shipping space in just three more years, accounting for 6.5 billion shipments per year, compared to forecasts of 5 billion and 3.7 billion packages for UPS and FedEx by the same time, respectively.
However, the breakneck pace of Amazon's shipping capabilities has come at a high human cost as we reported earlier in the year. The smaller companies — called delivery service providers — that Amazon depends on for most of its last-mile deliveries report horrific working conditions, which have also led to three fatalities. While Amazon cut its ties with the companies involved in those incidents, it had reportedly begun relationships with new companies working out of the same warehouses and hiring the same workers soon after, raising questions about how many more mishaps might await us in the future as the company nearly triples its shipping volumes in the next three years.
We may earn a commission for purchases using our links. Learn more.

Samsung's Galaxy S21 series misses out on this useful Android feature
The latest Galaxy S21 series phones from Samsung lack a useful feature that Google had launched five years back: seamless updates.

Is 2021 going to be the year you ditch Samsung?
Samsung continues to be a dominant force in the Android landscape — but that doesn't mean everyone is thrilled with where the company is heading.

These are the best Android phones you can buy right now
There are so many great Android phones to buy, so it can be tough to know which one to get. These are the best of the best at each price point.

These heavy duty & kids cases are perfect for the Amazon Fire HD 10
It's cool to have a super-slim and minimal case that doesn't add any bulk, but those cases don't offer much in the way of protecting your Amazon Fire HD 10. There are a lot of great options out there that are either heavy-duty, designed for kids or both, so your Fire HD 10 can withstand anything.