Morgan Stanley warns: Amazon's logistics expansion threatens UPS and FedEx
Morgan Stanley's report warns that Amazon's logistics expansion and low-price strategy are intensifying competitive pressure on UPS and FedEx. Amazon is leveraging its scale advantages to lower fees, attracting customers to shift their packages, and gradually developing logistics into an independent business. As a result, UPS and FedEx's stock prices are under pressure, and the market is concerned about the long-term threats to their core businesses and high-profit areas
Morgan Stanley's latest research report points out that as Amazon continues to expand its logistics business and offers low-cost delivery services to third-party customers, traditional express delivery giants UPS and FedEx are facing increasing competitive pressure. Analysts at the firm stated that although Amazon has not yet launched overnight delivery services, the introduction of this business is "just a matter of time."
Reports from industry media corroborate this concern. It is reported that, with its vast logistics network and scale advantages, Amazon's package delivery service pricing has become comparable to that of UPS and FedEx, with some routes even lower. Furthermore, logistics data shows that Amazon's pricing for lightweight packages under one pound is already below that of the United States Postal Service.
Amazon is actively competing for market share by simplifying pricing, waiving residential surcharges, and weekend delivery fees. A logistics data platform observed that some customers have saved up to $6 per package by switching eligible residential packages to Amazon delivery. In a case involving a large retail customer using FedEx, Amazon covered over 90% of its delivery range, saving the customer more than 33% in annual costs.
Analysts believe that Amazon is gradually transforming its logistics system from an infrastructure serving its own e-commerce business into an independent business aimed at external customers. Earlier this year, Amazon launched supply chain services that integrate freight, warehousing, fulfillment, and package delivery. Morgan Stanley previously described this move as a "watershed moment for North American freight transportation companies."
As a result of this warning, UPS and FedEx's stock prices briefly gave back early gains during trading. The market is concerned that Amazon's expansion may not only eat into e-commerce package shares but also further enter high-profit specialized logistics fields such as healthcare, posing a long-term threat to the two express delivery giants that have made such businesses a strategic core
