Dec 4 (Reuters) – Amazon’s investments in new fulfillment centers and delivery stations have gradually cemented the online giant’s position as a key player in the nearly $193 billion U.S. parcel industry, long dominated by UPS, FedEx, and the U.S. Postal Service.
The company said on Thursday it was in discussions with the U.S. Postal Service about the relationship and was considering its options before the current contract expires next year.
Here’s a snapshot of the U.S. delivery market:
* The U.S. courier and parcel market is expected to grow to $239.38 billion by 2030, data from Mordor Intelligence shows.
* Amazon surpassed UPS and FedEx in delivery volumes last year, according to Pitney Bowes’ parcel shipping index report.
* Americans shipped 22.37 billion parcels in 2024, with Amazon delivering 6.3 billion of them, narrowly trailing USPS’ 6.9 billion, the report showed.
* Amazon is on track to exceed USPS volumes by 2028 with 8.4 billion parcels, Pitney Bowes forecast in 2024.
* Amazon accounted for a 15.3% market share by revenue in 2024, marginally behind USPS’ 15.8%.
* UPS and Amazon are already scaling back their partnership, with UPS planning to cut the volume it handles for the retailer by more than 50% by 2026.
* US President Donald Trump said in February he was considering merging USPS — which posted a $9.5 billion loss last year — with the Commerce Department, a move Democrats said would violate federal law.
* Amazon pledged more than $4 billion in April to expand its U.S. rural delivery network by the end of next year.
(Reporting by Abhinav Parmar and Megavarshini G. Somasundaram in Bengaluru; Editing by Sriraj Kalluvila)
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