For decades now, UPS and FedEx have been the undisputed kings of package delivery. In this age of online binge shopping, they have been providing last-mile delivery to all who need it. Even Amazon has needed to enlist their services to get their merchandise where it needs to go. But as Amazon grows, it becomes more and more capable of cutting out the middle man, and with its massive existing network of vehicles and infrastructure, Amazon could very well dethrone the delivery giants in a few quick moves.
With the 50% increase in online shopping over the last decade, shipping companies, despite their own impressive networks, have actually found themselves unable to accommodate all orders in a timely manner. Amazon already essentially has all it needs to take them on; a library of customer data, copious fulfillment centers, and above all, a good public image. In a poll of US retailers, at least one-third of them said they would gladly employ an Amazon delivery service over UPS or FedEx (provided, of course, it’s at least 20% cheaper).
Of course, UPS and FedEx aren’t blind to this. With this year’s holiday season nearly over and the bulk of the deliveries handled, they can begin shoring up their defenses for next year. If Amazon wants to make a move on this industry, they’ll need to do it before the walls go up and the archers pop out.