Two of the largest brands in the e-commerce sector are UPS and Amazon. Although Amazon began as an online book retailer, it has developed into a massive, global business that offers everything from gadgets to food. But UPS is one of the biggest courier services in the world, moving more than 21 million parcels daily. As a result, it is difficult to answer the question of who is bigger.
There is little doubt that Amazon outperforms UPS in terms of revenue. Amazon reported $386 billion in revenue in 2020 while UPS reported $84.6 billion. However, while contrasting these two businesses, money is not the only thing to take into account. With operations in more than 220 nations, UPS has been around for more than a century. On the other hand, Amazon has only recently begun its own delivery network, making it a newcomer to the logistics industry.
Amazon has been investing billions of dollars in developing its own delivery infrastructure, which has resulted in a rapid expansion of the company’s logistics network. It already has a fleet of more than 30,000 delivery vans and trucks and has leased aircraft to launch its own air cargo service. Amazon has also been testing with drone delivery, and in some locations, it has even started deploying robots to deliver products. Some have concluded from this that Amazon might eventually quit use UPS completely.
But it’s unlikely that Amazon and UPS will ever entirely part ways. Although Amazon is growing its own logistics network, a sizable amount of its deliveries are still handled by UPS and other courier services. Additionally, UPS and Amazon have been working together to offer extra services including pickup sites at stores and return processing. Both businesses benefit from their mutually beneficial connection.
In conclusion, despite the fact that Amazon outperforms UPS in terms of revenue, the two businesses cannot be directly compared because they serve very distinct markets. Although Amazon’s logistics network is fast growing, it will still be some time before UPS is totally replaced. Considering the mutually advantageous connection between the two businesses, it is doubtful that Amazon will completely quit utilizing UPS in the near future.