Amazon is the world's largest online retailer, and UPS is one of the largest package delivery companies in the world. These two companies have a long-standing relationship, but the question remains, does Amazon own UPS? It's an intriguing question that has been circulating for quite some time, and the answer might surprise you.
Amazon is among the most successful companies thanks to its efficient logistics system. Every year. Amazon makes billions of deliveries from its fulfillment centers around the world. When you place an order for products on Amazon, it will quickly process and ship them to you within a few days. Given Amazon's convenient delivery choices and fast delivery speeds, you may wonder, does Amazon own UPS? In this article, we'll examine the relationship between Amazon and UPS.
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Does Amazon Own UPS?
No, Amazon does not own the United Parcel Service (UPS). However, Amazon relies on UPS to deliver its products to a wide range of areas. While Amazon's own shipment and delivery program competes with UPS, it still allows it to handle most of its deliveries. Therefore, Amazon has a strong partnership with UPS even though it has never owned it.
What Relationship Do Amazon and UPS Have
Since Amazon is a large retail business with vast shipping operations, you may think it owns UPS. However, that's not the case. Amazon and UPS are two distinct businesses with a vast delivery networks. While Amazon does not own UPS, Amazon uses UPS to fulfill some of its orders. UPS has been around much longer than Amazon.
Since its inception, Amazon has become the largest online shopping platform. However, to deliver its products to its customers, Amazon had to rely on third-party companies such as UPS, FedEx, and the US Postal Service to handle many of its deliveries. Amazon mainly relies on UPS to complete deliveries to regional areas outside the major cities.
It also uses UPS and USPS to complete Sunday deliveries, including on-demand Prime delivery services. Amazon became more dependent on UPS after FedEx refused to renew its contract with this ecommerce giant. Therefore, Amazon maintains a strong relationship with UPS and relies on it to transport its products to designated destinations.
Generally, Amazon is both a huge customer and a competitor of UPS. Nevertheless, the increasing demand for Amazon products has made UPS an important aspect of fulfilling its orders worldwide.
Who is the Owner of UPS?
Even though Amazon and UPS were both founded in Washington, they had different owners. UPS, originally known as the American Messenger Company, was founded in 1907 by James E. Casey. After 1999, UPS went public and became controlled by several different stockholders. Apart from the general public, which owns 44% of UPS, board members, employees, and retail/institutional investors are also shareholders at UPS.
Amazon and UPS are both listed on the US stock exchange as publicly-traded companies. For Amazon, its primary shareholders are Jeff Bezos and its president and CEO, Andrew Jassy. Jeffrey Blackburn, a media group chief, is another top shareholder at Amazon. Typically, UPS has grown to become one of the most successful shipping couriers in the world.
Does Amazon Use UPS?
Amazon uses UPS to deliver products to remote areas outside large cities. Amazon offers different delivery services, from same-day to several-week deliveries. It uses Amazon drivers and various delivery partners to deliver products to its customers.
These include UPS, FedEx, and USPS shipping and delivery. However, Amazon continuously increases its fleet of company trucks, vans, and planes so that it can become the sole shipper for its deliveries.
Did Amazon Attempt to Purchase UPS?
Amazon has never made a serious attempt to purchase UPS. However, there is always speculation of Amazon trying to buy UPS, but it has never materialized, and Amazon does not plan on making a move. Amazon launched its own delivery program, which delivers over two-thirds of its packages. Therefore, Amazon has developed its own delivery network that it no longer needs UPS.
Despite that, Amazon still partners with UPS to deliver millions of products daily. With the rapid increase in Amazon customers, Amazon's collaboration with other delivery partners is unlikely to end. Shippers like UPS allow Amazon to deliver regional and weekend orders that Amazon could not fulfill. However, Amazon does not plan on buying UPS but wants to exceed UPS in delivery volume.
Will My Package be Delivered by Amazon or UPS?
Whether Amazon or UPS will deliver your product depends on where you live and the date and time of the delivery. Amazon has cargo planes, delivery planes, and dedicated drivers to deliver your shipment across major cities in the United States.
Unfortunately, Amazon cannot service all regions. Therefore, it partnered with UPS, which services areas beyond the major metropolitan area. Depending on where you live, an Amazon delivery driver or a UPS partner may deliver your package. UPS also handles most weekend deliveries on behalf of Amazon, especially on Sundays. Therefore, Amazon mostly transports your products as far as its network allows.
After that, they will let their local delivery partner, like UPS, handle it. Amazon allows you to track the progress of your Amazon order online so that you know when it will arrive and whether it was fulfilled by Amazon or UPS. Irrespective of whether Amazon or UPS delivered your package, Amazon ensures that your products are delivered on time without making any delivery mistakes.
Can Amazon Customers Choose their Delivery Service?
Unfortunately, Amazon customers cannot choose whether Amazon, UPS, or any other company will deliver their orders. Amazon will choose the most efficient and cost-effective option to deliver customer orders. However, Amazon allows third-party sellers to choose what companies provide its deliveries.
Therefore, Amazon can choose either FedEx, UPS, USPS, or a combination of various shipping companies to deliver your package. However, you’re always sure that Amazon will fulfill your order. In case your package was damaged during transportation, you request an exchange or a refund.
Customer satisfaction is one of the key elements for the success of any business, including Amazon. That's why Amazon ensures that the right product reaches the right customer in the shortest amount of time. For years Amazon and UPS have collaborated to ensure this is achieved. While Amazon does not own UPS, it still relies on it to deliver a portion of its orders. Amazon is also working on its own in-house delivery network but will continue relying on UPS to fulfill some of its orders.