Amazon’s own logistics has delivered half of the package, will exceed UPS FedEx

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Editor’s note: This article is from Tencent Technology, reviewed by Cheng Xi, and reproduced with permission from 36 氪.American Amazon has entered the all-encompassing field from e-commerce and became a comprehensive Internet giant. One of Amazon’s quietly developing businesses is its own logistics and express delivery business.According to the latest news from foreign media, an analyst at Morgan Stanley said recently that Amazon has been able to deliver half of its online shopping packages in the United States, and the future package delivery volume will exceed the two major express delivery giants FedEx and United Parcel (UPS).According to foreign media reports, in recent years, Amazon’s diversified fields include cloud computing, online video, online music services, original film and television, consumer electronics hardware, and logistics and express delivery.According to the latest Morgan Stanley research report, Amazon has delivered about half of its packages in the United States.Morgan Stanley said: “Our Alpha Smart analysis shows that Amazon Fulfillment has delivered about 50% of Amazon’s packages in the United States, mainly in urban areas.” Amazon Fulfillment is the e-commerce giant’s internal logistics business.Morgan Stanley said that Amazon’s share of the company’s parcel volume in the United States more than doubled from about 20% a year ago, and has now reached a rate of 2.5 billion per year.By comparison, Morgan Stanley estimates that United Parcel and FedEx deliver 4.7 billion and 3 billion packages in the United States each year, respectively.Morgan Stanley said that from 2018 to 2022, the number of packages delivered by FBA in the United States will grow at a compound annual growth rate of 68%.Thus, by 2022, FBA will deliver 6.5 billion parcels per year, far exceeding the combined value of 5 billion parcels per year and FedEx’s 3.4 billion parcels per year.Morgan Stanley said: “For us, FBA is already large, and its transportation is only about one-fifth of its competitors, which shows that it has the ability to use density and technology to improve transportation efficiency.” The company saidFBA is more focused on densely populated areas than its competitors.According to Morgan Stanley estimates, approximately 61% of FBA’s packages come from urban suburbs, 28% come from cities, and only 11% come from rural areas.According to Morgan Stanley, this makes Amazon’s rural business only about half of its competitors.In the entire courier industry, usually 20% of the packages come from rural areas.Morgan Stanley has a buy rating on Amazon stock with a target price of $ 2,100, which is nearly 20% higher than current levels.The company also lowered its target prices for United Parcel and FedEx, which lowered from $ 85 to $ 78, while FedEx lowered it from $ 120 to $ 111.The two cuts are about a third.In terms of stock ratings, Morgan Stanley has a sell rating for United Parcel and a neutral rating for FedEx.In the past few years, Amazon has gradually expanded its logistics and express delivery business. The company has purchased or leased a large number of trucks, aircraft, and even has an ocean shipping fleet, which can transport containers from Chinese “world factories” to US ports.In the field of express delivery, last mile delivery is the biggest challenge.Amazon has adopted a gig economy model similar to Uber, and ordinary people with private cars can register as Amazon freelance courier and use their free time to earn extra money.In addition, Amazon is encouraging the establishment of third-party small independent courier companies that use external trucking resources to complete final package delivery tasks.According to foreign media reports, Amazon is also developing new technologies for express delivery, such as drones and unmanned cars that deliver packages.But none of these technologies have been implemented on a large scale.In the past, Amazon heavily used external courier companies to deliver packages, but it is currently reducing the proportion of outsourcing.In addition, Amazon has been caught in controversy before, and it is alleged that the package delivery fee provided to the US Postal Service is too low, which is an exploitation of this national institution.(Cover image from