Amazon Eyes Dominant Delivery Role with In-House Network Expansion

Amazon is expanding its in-house delivery network to reduce its reliance on third-party carriers like USPS and UPS. The company projects that by next year, over 86% of its packages will be delivered through its own logistics network.

This represents a significant increase from the current figure of two-thirds, with Amazon aiming to reach nearly 89% by 2029. In addition, the company estimates that it will shrink its share of packages delivered by USPS and UPS from 10% and 1.8%, respectively, in 2027 to 8% and 1.4% in 2029.

The investment in Amazon's delivery network has been substantial, with a $4-billion spend announced last year. This has allowed the company to expand its rural delivery capabilities and accelerate shipping speeds.