Number of the Day
Amazon’s Plan to Bypass the U.S. Postal Service, by the Numbers
The e-commerce giant doesn’t just want to sell you stuff, it wants to deliver it to you too
67%: That’s how much of Amazon’s package volume the e-commerce giant delivers itself. That number was just 50% in December, and is expected to grow to 85% by the end of 2022, The Information reports.
The number of Amazon delivery stations in the U.S. has grown to 278, a 71% increase since March, and is expected to go up to 415 by the end of the year. These delivery stations — which rely on contract drivers to pick up and deliver packages — are part of Amazon’s broader strategy to build out its own fulfillment and delivery network rather than continuing to rely on the USPS or private courier services like UPS.
Amazon has also been in talks with America’s largest mall operator, Simon Property Group, about turning current and former Sears and J.C.Penney locations into fulfillment centers. And while it may be a few years yet before we see Amazon drones delivering packages, the company took a big step toward making those plans a reality, receiving federal approval last week to establish a fleet of delivery drones.
Combined with its expanding private label empire, the e-commerce giant is closer than ever to owning both the cargo and the rails.