For as long as we can remember, the names “Amazon” and “UPS” have been as household as “Dishwashers” or “Napkins”, whether it’s the Kindle you got for your sixth birthday or the logo you see every day on the dispatch rider’s bike you’ve one way or the other had an interaction with either or both brands, with the popularity and overwhelming success of Jeff Bezos’ Amazon its no surprise that the question of its ownership over UPS was eventually raised, for what’s an e-commerce juggernaut without a little market monopoly. Let’s see ‘Do Amazon own UPS?’.
Do Amazon own UPS?
Although Amazon does not and has never previously controlled UPS, both companies have a history of collaboration as well as competition, Amazon often requires the services of UPS in densely populated regions due to the versatility of UPS delivery services, a partnership that is still in play today.
As with any global brand, scalability and sustenance of consumer satisfaction across countries and continents is never an easy fix, and with the company consistently seeing an increase in sales volume annually Amazon hasn’t had a walk in the park when it comes to getting packages off to consumers within the shortest periods of time possible, as local laws, weather conditions, government policies all play a major role in an international e-commerce delivery system. This has inevitably led to Amazon having to develop a healthy mix of logistics company partners such as FedEx, United Parcel Service, and the United States Postal Service in order to make up for internal delivery shortcomings and also to optimize the entire Amazon consumer experience.
Looking back at December 2013, the entire American e-commerce and delivery industry experienced a major shortfall as many American families were left disappointed as the holiday gifts they had ordered through online retailers like Amazon didn’t arrive on time, this was due to the heavy volume of packages and the lack of flexible shipping infrastructure to handle such volume in conjuncture with the weather conditions at the time. Fast forward eight years and thirty-seven billion dollars in investments later Amazon has managed not only to build a formidable shipping and delivery system but has also become the fourth largest shipping company in the US, after FedEx, UPS, and the United States Postal Service.
”Amazon poised to pass United Parcel Service and FedEx
to become largest U.S delivery service by
early 2022”- Dave Clark, Amazon’s CEO Worldwide Consumer.
Over the years Amazon has managed to scale up her delivery capabilities tremendously, delivering about 67% of all goods sold directly to consumers, a figure that’s up from 50% in 2019. By November 2021, UPS services only accounted for 21% of Amazon’s deliveries.
At this point in time, it’s no secret that Amazon has hopes of being the go-to guy for delivering solutions in the US, but do those plans involve purchasing UPS? Highly Unlikely, Instead Amazon has opted for a more aggressive and determined approach.
In an attempt to be a force to be reckoned with in the shipping industry, Amazon has had to make a lot of big moves and some of these include the launch it’s Cargo airline, Amazon Prime Air, with the aim of having it handle the fluctuations in demand the company sees at certain times of the year, the company has also inaugurated a team to develop her very own Air-traffic control software to further enhance the company’s growing fleet of delivery drones. Amazon has also made statements pointing to the fact that the company is officially looking into delivering goods via a network of subterranean tunnels thereby eliminating all road traffic complications, the e-commerce giant has also been reported to have created a team dedicated to the application of self-driving autonomous vehicles for the delivery of goods, and with the rapid developments in both fuel cell and battery powered electronic vehicles the future may be just around the corner.
In conclusion, we have seen the e-commerce and shipping industry from the consumer and retail point of views respectively, it’s challenges and techniques often applied in tackling such challenges, with that we’ve come to the end of the article. Thanks for reading.
Frequently Asked Questions
- Who is bigger UPS or Amazon?
As at October 2021, Amazon had about 21% of the US shipping market while UPS was ahead with 24%
- Does Amazon have a contract with UPS?
Though Amazon makes use of UPS carrier services for certain regions there is no public declaration of a contract between both parties
- Is Amazon more expensive than UPS?
Amazon has been known to offer shipping fee discounts in an attempt to court new customers but to a large extent shipping rates are determined by variables such as size, location, item, time period for delivery, method of delivery e.t.c.