It is yet another major push by Amazon to gain more control over its own deliveries in a continued quest to build a vast freight and parcel shipping network. Amazon says it has to build out its own services simply to handle the surging number of online orders that UPS, FedEx and the U.S. Postal Service can't. More than $4 of every $10 spent online in the U.S. is on Amazon.com, and the number of its deliveries topped more than a billion last year, according to analyst estimates. Still, Amazon has taken broad steps in recent years to poach some of the most desirable deliveries from its partners and could be on a collision course to one day compete directly with the shipping giants. "There's so much growth here in parcel delivery that there's more than enough for everybody," said Dave Clark, Amazon's senior vice president of world-wide operations.
President Donald Trump's ordered review of the U.S. Postal Service's finances will likely show that Amazon.com Aside from Amazon, two of the largest users of the agency's parcel-delivery business are FedEx Corp. and United Parcel Service Inc. All three receive comparable rates on a service that lets them drop truckloads of packages at a local post office for the last leg of delivery. Amazon, FedEx and UPS get about 5% to 10% off published rates for the service, known as Parcel Select, according to a person familiar with the matter. "There's no competitive advantage that Amazon has over UPS or FedEx using the exact same service," this person said.
Amazon.com Inc. may be developing mobile technology so it can schedule and track truck shipments of its products with a few taps or clicks--the next step in the e-commerce giant's bid to become its own global freight broker and compete with companies in the $150 billion business of booking transportation. Sources familiar with Amazon's business said the company may be looking to acquire or build an application capable of matching available trucks to shipments, for instance, from a seaport hub to a distribution center or from a warehouse to a parcel-delivery facility. The news was first reported by Business Insider. Analysts said if the service works for Amazon, the company's next step could be to make it available for a fee to non-Amazon shippers as an easy-to-use option for business-to-business freight shipping. "This is the next piece in the jigsaw puzzle," said Cathy Roberson, a shipping industry analyst.
Between 10 and 11:30 p.m., as most of Memphis is winding down for the night, the FedEx Express World Hub is revving up for its busiest hours of the day. Some 10,000 workers pour into the campus, ready to begin a mind-bogglingly complex ritual of steering packages to customers' doorsteps on time. Hundreds of equipment operators zoom around the 880-acre site on warehouse tugs, pulling trains of silver shipping containers shaped like half-igloos. In an earsplitting operation dubbed "the matrix," package sorters corral boxes into a single-file line for a trip down a tangle of conveyor belts. On this particular night at FedEx's largest global facility, workers will sort some 1.3 million express packages.