Amazon Becomes Top US Parcel Carrier, Surpassing USPS in 2025

Key Details Amazon has officially dethroned the U.S. Postal Service as America's largest parcel carrier, handling 6.7 billion packages in 2025 compared to USPS's 6.6 billion. The e-commerce giant grew 9.8% year-over-year, while traditional carriers declined significantly. UPS saw volumes drop 8.3% to 4.4 billion deliveries, while FedEx managed 3.6 billion packages. Why It Matters Amazon's dominance reflects a fundamental shift in the logistics industry. The company now handles third-party contracts beyond its own retail orders, expanding its carrier role. Alternative carriers like Walmart, Target, and startups captured 13% growth, totaling 2.6 billion parcels as the market fragments away from legacy carriers. The Strategic Retreat UPS and FedEx are deliberately stepping back from low-margin last-mile delivery to focus on higher-value B2B logistics and premium e-commerce services. These networks cannot profitably compete on short-distance, lightweight shipments. However, this strategy poses risks: B2C parcels represent 75% of the market, while B2B comprises only 25%, leaving limited upside. Driver Impact For professional drivers, this consolidation means potential route changes and carrier shifts as the industry realigns around specialized services rather than general parcel delivery.