amazon logistics

Leader

Amazon.com's parcel delivery operation; 6.3B US deliveries in 2024 (28.2% market share), surpassed UPS and FedEx individually, rivals USPS, same-day Prime delivery, DSP program competing with UPS and FedEx.

Acquired byAmazon.com
Updated March 2026
Market Share
28.2%

Company Overview

About amazon logistics

Amazon Logistics is the package delivery and last-mile distribution operation of Amazon.com, Inc. (NASDAQ: AMZN) — built from 2014 to the present as an internal logistics capability that has grown into a full-scale competitive parcel delivery network now rivaling the established carriers it was designed to supplement. In 2024, Amazon Logistics processed 6.3 billion US delivery orders — representing 28.2% of all US package shipments and 6.78% year-over-year volume growth — establishing Amazon as the second-largest US parcel carrier by volume, trailing only USPS (31% market share) and surpassing UPS and FedEx individually. Amazon Logistics operates through a tiered infrastructure: Amazon Air (40+ cargo aircraft delivering packages between sort centers overnight), Regional Sort Centers (high-throughput sortation facilities distributing packages to delivery stations), Delivery Stations (last-mile facilities where packages are loaded into vans for neighborhood delivery), and Delivery Service Partner (DSP) program (100,000+ independent contractors operating branded Amazon delivery vans under franchise-like agreements). Amazon also operates its Flex program (individual gig drivers delivering packages in personal vehicles), drone delivery (Prime Air, authorized in limited markets), and Amazon Hub Locker (self-service package pickup locations). The Amazon Logistics network is designed around same-day and next-day delivery promises that differentiate Amazon Prime from competitor e-commerce experiences.

Business Model & Competitive Advantage

Amazon Logistics' captive delivery model creates a competitive advantage for Amazon's e-commerce business by controlling the customer experience at the final, most emotionally salient stage of online shopping: a customer's Amazon package is delivered on-time, trackable through the Amazon app with live driver location updates, left in a secure location (or returned to the van if the location is insecure), and supported by Amazon's no-questions-asked return policy — creating a delivery experience that independent sellers on Amazon can offer to their customers without building their own logistics infrastructure. The control over last-mile delivery (which UPS and FedEx provide at external cost) eliminates the negotiating leverage that UPS and FedEx previously exercised over Amazon's shipping rates as Amazon's volume grew — Amazon built an alternative to reduce dependency on carriers that were raising rates faster than Amazon's e-commerce margins could absorb. Amazon Logistics' variable cost structure (DSP contractors, Flex gig drivers) allows rapid scale-up during Q4 peak season without the fixed headcount that USPS, UPS, and FedEx maintain year-round.

Competitive Landscape 2025–2026

In 2025, Amazon Logistics competes in the US parcel delivery market against United Parcel Service (NYSE: UPS, $93.0B 2024 revenue), FedEx (NYSE: FDX, $88.0B 2024 revenue), and USPS (government agency, 31% US market share) for merchant shipping contract volume, last-mile delivery density efficiency, and same-day delivery coverage area expansion. Amazon Logistics now serves third-party shippers through the Amazon Shipping (formerly Amazon Shipping Public Beta) offering — selling its excess last-mile delivery capacity to non-Amazon merchants, transforming Amazon Logistics from a captive delivery operation into a competing carrier for UPS and FedEx's merchant customer base. The 28.2% US market share represents a structural shift from a carrier-dependent model — in 2015, Amazon was almost entirely dependent on UPS, FedEx, and USPS for delivery; by 2024, Amazon Logistics handled 28% of its own US deliveries. The 2025 strategy focuses on expanding same-day delivery coverage (same-day eligible Prime customers in 100+ metro areas), growing Amazon Shipping third-party merchant volume, and continuing drone delivery expansion in suburban markets.

Founded
1997
Headquarters
Seattle, Washington, United States
Curated content • Fact-checked and verified

The amazon logistics Story

Founded in 1997
Seattle, Washington, United States
Founded by Jeff Bezos

Founders

Jeff Bezos
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Company Timeline

Major milestones in amazon logistics's journey

12
Total Events
0
Funding Rounds
1
Acquisitions
3
Product Launches
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Leadership Team

Meet the leaders behind amazon logistics

Andy Jassy

CEO, Amazon

Andy Jassy became Amazon's CEO in July 2021, succeeding founder Jeff Bezos. Previously leading Amazon Web Services (AWS), Jassy oversees all Amazon operations including the global logistics network. Under his leadership, Amazon has accelerated investments in logistics technology and infrastructure.

Doug Herrington

CEO, Worldwide Amazon Stores

Doug Herrington was appointed CEO of Worldwide Amazon Stores in June 2022, overseeing Amazon's retail operations globally including logistics, e-commerce, and physical stores. He joined Amazon in 2005 to build the Consumables business, launched AmazonFresh in 2007, and led all North American Consumer operations from 2015.

John Felton

Senior Vice President, Worldwide Operations

John Felton leads Amazon's unified Operations organization, encompassing global import/export, Amazon Logistics, last-mile delivery services, and fulfillment center operations. In 2019, he took over the newly formed Global Delivery Services group, reporting to Doug Herrington.

Open Positions

Reddit Discussions

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Key Differentiators

Market Leader

amazon logistics is recognized as a market leader in the Logistics & Supply Chain sector, demonstrating strong industry presence and customer trust.

Significant Market Share

Commands 28.2% of the market, indicating strong competitive positioning and customer adoption.

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