Amazon Is Gaining in Deliveries at the Post Office’s Expense, Analyst Says

Amazon’s additional market share—and gains in merchandise sales and revenue—will come largely at the expense of the U.S. Postal Service, Blackledge said.

Growth in the volume of parcels delivered by the post office dropped from 21% in 2016 to 6% in 2018. There was a 5% year-over-year decline in the first quarter of 2019, according to post-office figures the analyst cited.

The decline comes as Amazon ramps up some of its faster shipping programs and shifts to other options for last-mile deliveries. Blackledge estimates that the share of Amazon’s last-mile deliveries handled by the postal service will drop from about 54% in 2018 to about 35% in 2024. His previous estimate was for a share of 45% in 2024.

The postal service didn’t immediately respond to a request for comment.

Other players, such as DHL International, and Amazon affiliates including its Uber-like in-house program Amazon Flex, and its Delivery Service Partner program, are picking up that market share.

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Wish it would drop by 100% by Christmas 2019!

No worries… management will have it all figured out soon 😉

Read between the lines, the percentage of growth declined 5% year to year but the actual growth trend in numbers of parcels delivered continued upward. Also, let’s see how these other delivery partners handle the Xmas seasons in this tight labor market