Amazon Eyes Dominant Delivery Role with 90% of US Packages by 2029
Amazon is rapidly expanding its own delivery network in the US, aiming to handle nearly 90% of its packages by 2029. The company's internal forecast projects that its first-party delivery network will grow from 86.3% in 2027 to 88.7% in 2029.
According to an internal planning document reviewed by Business Insider, Amazon's own delivery network is expected to handle roughly 12.2 billion US packages in 2027, growing to 15.8 billion in 2029. This represents a significant shift from the company's previous estimates, which put first-party delivery at 83.8% of US packages in 2027 and 85% in 2028.
Amazon is not cutting out traditional carriers entirely, but its reliance on them will decrease. The USPS contract, set to expire in 2029, allocates about 1.4 billion packages annually to the Postal Service, a decline from previous projections. UPS's share of Amazon's US packages is expected to fall to 1.4% by 2029, and FedEx plays an even smaller role.
Amazon's growing delivery network is driven by its need for faster and more efficient shipping. The company has committed over $4 billion to triple the size of its rural network by the end of 2026. It's also testing all-day delivery with faster shipping windows and exploring Walmart-sized stores under Project Kobe that could serve as pickup points and local delivery hubs.