Amazon to deliver 3.5 billion packages through own network in 2019

FILE PHOTO: A delivery cart loaded with a number of packages from Amazon stands on a sidewalk in New York City, New York, U.S., July 25, 2019. REUTERS/Lucas Jackson

(Reuters) - Inc AMZN.O said on Thursday it was on track to deliver 3.5 billion customer packages globally this year through its in-house delivery network.

Amazon, with its growing network of delivery planes, trucks and vans, is regarded as a potential long-term threat to FedEx Corp FDX.N and United Parcel Service Inc UPS.N.

FedEx this summer ended its relationship with the world’s biggest online retailer. UPS continues to deliver millions of packages for Amazon, which said it now handles the delivery of about half of its own packages around the world.

A Morgan Stanley analysis from last week estimated that Amazon logistics delivered about 20% of the company’s packages last year and nearly 46% in 2019 through August.

The brokerage estimated the Amazon delivery network will move 6.5 billion packages by 2022, more than UPS at 5 billion and FedEx at 3.4 billion.

Amazon said it now has 150 U.S. delivery stations employing more than 90,000 people.

Reporting by Munsif Vengattil in Bengaluru; Editing by Shinjini Ganguli and Richard Chang