FedEx CEO downplays Amazon Logistics, cites under 2% U.S. parcel share
UPS•FedEx CEO Raj Subramaniam stated Amazon Logistics handles less than 2% of U.S. parcel volume and lacks the network depth to disrupt major carriers. He reaffirmed FedEx’s expectation for 10–12% volume growth in fiscal Q3 following recent capacity and technology expansions.
1. FedEx CEO Remarks on Amazon Logistics
Raj Subramaniam emphasized that Amazon Logistics currently accounts for under 2% of total U.S. parcel volume, arguing its limited network density prevents a credible challenge to established carriers. He noted ongoing investments in capacity and technology designed to sustain service levels facing rising e-commerce demand.
2. Industry Implications for UPS
Subramaniam’s comments underscore a competitive environment where scale and infrastructure investments are decisive. UPS may view this as validation of its own network expansion strategy while tracking Amazon’s incremental growth in third-party delivery services.
