What If Amazon Delivered Everything You Order From Anywhere?
Why Read This
What Makes This Article Worth Your Time
Summary
What This Article Is About
John Herrman examines Amazon’s transformation from a retail giant into America’s largest private delivery carrier, now surpassing both FedEx and UPS in package volume. Amazon leverages its massive logistics infrastructure—over 500 million square feet of warehouse space and more than 200,000 delivery workers—to expand beyond delivering its own products to handling shipments from independent retailers like eBay, Etsy, and Shopify stores.
This expansion is built on a contractor model where local “delivery service providers” employ workers rather than Amazon hiring them directly, creating a system that’s faster and cheaper but raises concerns about labor conditions. Herrman argues that if this growth continues, Amazon could fundamentally reshape the delivery sector by establishing a new standard: heavily subcontracted, technology-optimized logistics that directly challenges traditional carriers on their own turf.
Key Points
Main Takeaways
Delivery Dominance Achieved
Amazon surpassed UPS in 2022 to become the largest private carrier in the U.S., trailing only the postal service.
From Retailer to Logistics Giant
Amazon is better understood as a massive logistics operation that happens to include retail, similar to how AWS sells computing power.
Third-Party Delivery Expansion
Amazon now delivers packages from retailers beyond its ecosystem, including eBay, Etsy, and independent Shopify stores through “Buy with Prime.”
Contractor-Based Infrastructure
Amazon’s 200,000 drivers work through local “delivery service providers” rather than as direct employees, creating legal distance from labor issues.
Competitive Positioning Against Legacy Carriers
Unlike heavily unionized UPS and USPS, Amazon’s contractor model offers faster, cheaper service while avoiding traditional labor commitments.
Industry Transformation Potential
If growth continues, Amazon could remake the entire delivery sector by establishing subcontracted, technology-driven logistics as the new standard.
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Article Analysis
Breaking Down the Elements
Main Idea
Logistics Dominance Through Infrastructure
Amazon has evolved from an online retailer into the largest private delivery carrier in America, now expanding beyond its own ecosystem to deliver packages for any retailer. This transformation is built on a contractor-based model that could fundamentally reshape the entire delivery industry by prioritizing speed and cost-efficiency over traditional labor structures, potentially setting a new standard that competitors will struggle to match.
Purpose
Informative Analysis with Critical Undertone
Herrman aims to inform readers about Amazon’s strategic expansion into third-party delivery while subtly questioning the implications of this growth. By highlighting the contractor model and noting concerns about labor conditions, the article encourages readers to consider the broader consequences of Amazon’s business practices beyond the convenience they offer consumers. The piece serves as both business analysis and cautionary observation about market concentration.
Structure
Observational → Contextual → Critical
The article opens with concrete observations about Amazon’s physical presence during the holiday season before providing historical context about its rise to delivery dominance. It then analyzes Amazon’s business model transformation, explaining how retail has become secondary to logistics operations. Finally, it examines the contractor-based delivery infrastructure and its implications, building toward a critical assessment of how this model could reshape industry standards while raising labor concerns.
Tone
Analytical, Measured & Subtly Critical
Herrman maintains a professional, business-journalism tone while weaving in understated criticism. Phrases like “vestigial retail operation” and observations about workers getting “shot at” inject pointed commentary without becoming overtly polemical. The tone balances factual reporting about Amazon’s impressive logistical achievements with measured concern about labor practices and market concentration, allowing readers to draw their own conclusions about whether this transformation represents innovation or exploitation.
Key Terms
Vocabulary from the Article
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Tough Words
Challenging Vocabulary
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To surpass or overshadow something in importance, achievement, or prominence; to make something seem less significant by comparison.
“In 2020, Amazon eclipsed FedEx. In 2022, it surpassed UPS.”
Remaining as a trace or remnant of something that formerly existed but has been reduced or lost its original function or significance.
“Amazon is better understood as a massive logistics operation with a vestigial retail operation strapped to its back.”
To hire an outside party to perform part of a contract or provide services rather than using one’s own employees or resources.
“Amazon could remake an entire sector of the economy in its image: faster, cheaper, and subcontracted out to the greatest extent possible.”
Smooth and continuous, without apparent gaps, interruptions, or transitions; executed in a way that appears effortless or invisible to users.
“For Amazon’s customers, these logistical changes have felt relatively seamless, manifesting as different trucks and different workers.”
A person or company employed to deliver packages, documents, or messages, especially one that operates on a commercial basis.
“Amazon’s delivery business outwardly resembles other delivery firms, with fleets of branded vehicles and couriers that often wear uniforms.”
Becoming apparent or visible; showing or demonstrating something clearly through signs, actions, or physical presence.
“These logistical changes have felt relatively seamless, manifesting as different trucks and different workers offering approximately the same service.”
Reading Comprehension
Test Your Understanding
5 questions covering different RC question types
1Amazon’s delivery workers are directly employed by Amazon and receive the same benefits as workers at UPS and the USPS.
2According to the article, what is the primary reason Amazon can offer faster and cheaper delivery services compared to traditional carriers?
3Which sentence best describes how Amazon’s business model has fundamentally changed?
4Based on the article, determine whether each statement about Amazon’s delivery expansion is true or false.
Amazon surpassed both FedEx and UPS in total package delivery volume by 2022.
The “Buy with Prime” feature only works for products sold directly through Amazon’s marketplace.
Amazon’s delivery infrastructure includes more than 500 million square feet of warehouse space as of 2021.
Select True or False for all three statements, then click “Check Answers”
5What can be inferred about the author’s perspective on Amazon’s delivery expansion?
FAQ
Frequently Asked Questions
Amazon’s contractor model means that delivery workers aren’t employed directly by Amazon but rather work for local and regional “delivery service providers” that Amazon contracts with. While Amazon dictates operational details about how these businesses function, it doesn’t technically employ the workers, creating legal distance from labor issues like unionization efforts and working conditions. This arrangement allows Amazon to maintain control while avoiding the benefits and protections typically provided to direct employees.
Amazon operates over 500 million square feet of warehouse space, employs more than a million people in the United States, and runs approximately 200,000 delivery routes daily. Unlike UPS and USPS, which are heavily unionized with many full-time carriers, Amazon’s infrastructure relies on subcontracted delivery service providers. This gives Amazon flexibility and cost advantages while raising questions about labor conditions. The scale now exceeds both FedEx and UPS in package volume.
“Buy with Prime” allows independent e-commerce websites to integrate Amazon’s fulfillment and delivery services directly into their checkout process. This means when you purchase from an eBay listing, Etsy shop, or Shopify store, the product can be warehoused, shipped, and delivered by Amazon even though you never directly interact with Amazon’s platform. It extends Amazon’s logistics reach beyond its own marketplace into third-party retail ecosystems.
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This article is rated as Intermediate level. It uses business-focused vocabulary like “logistics,” “ecosystem,” and “subcontracted” while discussing complex market dynamics and competitive positioning. The writing assumes familiarity with corporate structures and labor relations, making it appropriate for readers preparing for standardized tests like the CAT, GRE, or GMAT who need practice with business journalism and analytical thinking about industry transformation.
John Herrman writes for New York Magazine’s Intelligencer section, which focuses on technology, business, and media analysis. The publication is known for critical examination of how tech companies reshape markets and society. Herrman’s perspective is particularly valuable because he contextualizes Amazon’s delivery expansion not just as a business story but as a potential transformation of an entire economic sector, raising important questions about labor practices and market concentration that mainstream business coverage sometimes overlooks.
The Ultimate Reading Course covers 9 RC question types: Multiple Choice, True/False, Multi-Statement T/F, Text Highlight, Fill in the Blanks, Matching, Sequencing, Error Spotting, and Short Answer. This comprehensive coverage prepares you for any reading comprehension format you might encounter.
