This note is a segment from Business Insider Intelligence's forthcoming 2018 Delivery Trust Report. The full report uses consumer survey data from our proprietary panel to evaluate how offerings from the largest delivery companies in the US stack up on customer service, package tracking, package protection, and timeliness of delivery, as well as how at risk these providers are to new challengers entering the space.
UPS and FedEx are facing perhaps the biggest threat to their duopoly in decades from Amazon. The Seattle-based e-commerce juggernaut not only has the resources to build a competitive delivery service, but it's also captured the trust of consumers, putting the company in a unique position to challenge these legacy providers. Nearly half of respondents to Business Insider Intelligence’s 2018 Delivery Trust survey said they would trust an Amazon-owned shipping service to deliver their online purchases more than UPS, FedEx, USPS, and DHL. To make matters worse for legacy delivery providers, instead of standing idly by, Amazon appears to be actively trying to compete in the delivery space.
Amazon has been building up its logistics network, which now includes over 70 delivery stations, more than 7,500 truck trailers, and the leasing of roughly 35 planes. However, where the firm is most likely to compete against legacy delivery companies is in last-mile delivery.
- Amazon just recently introduced Delivery Service Partners to help entrepreneurs form small delivery companies for the specific purpose of delivering its own packages. Users of service will have access to the technology and training needed to launch their delivery businesses, which could see entrepreneurs employing up to 100 drivers and leasing between about 20 and 40 Amazon-emblazoned vans — when making Amazon deliveries, the e-commerce giant will require drivers to use Amazon-branded vans and uniforms.
- In February, The Wall Street Journal reported that Amazon was launching its own delivery service, dubbed Shipping With Amazon (SWA), catered to other businesses. The new service, which sees Amazon delivering packages for third-party sellers on its [...]