September 3, 2020: UPS is facing threat from the rapid expansion of Amazon in the courier services. However, the financial barrier is making it difficult to compete with Amazon. UPS is a Federal government-owned organization. Concerning the 2006 law, the company has to pay the employee’s retirement health care benefits 75 years into the future.

The pandemic has helped the online business to grow exponentially. Meanwhile, the postal services have seen an upward growth as the Americans are shipping more products in the pandemic. But, UPS is still struggling with its finances.

Trump has requested to charge more to the e-tail giants for the postal services. However, giants like Amazon have already designed their own logistics team and are focusing to reduce the reliability of postal services in the future. Amazon is the 22nd richest-company in the world, with a valuation of over $1.2trillion. The company focused on increasing the delivery center across the United States, with a total of 279 new centers for logistics and distribution in this pandemic situation.

According to the research, Amazon is going to double its square foot area in the United States by 2021. A typical delivery station handles 40,000 packages every day. The network of delivery stations handles 67% of overall postal services in the United States that is expected to reach 87% by 2022.

“The most immediate impact is a reduction in the volume being given to them,” Wulfraat said of the postal service. “Every time a delivery station turns on it essentially loses the equivalent volume in daily packages.”

“We utilize a variety of partners, including UPS and USPS, to help our service customers, and will continue to do so. We are very happy to have the delivery capacity our carrier partners can provide. They provide a high-quality service, and our delivery efforts are needed to supplement that capacity rather than replace it,” Deborah Bass Amazon spokeswoman said in a statement.

The online retailers have created more than 170,000 jobs in this pandemic and to deliver better and faster service to people. The growth which we are experiencing from Amazon is not going to stop and, the UPS has to think on an alternate plan to resolve the competition or get back into the competition.