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Amazon is a retail company at its core, its logistics operations are in service to that end. For Amazon to directly fight FedEx and UPS, it risks doing so at the detriment of its own operations. As Amazon Air grows, its rise is not strictly zero-sum and FedEx and UPS benefit from the expanding marketplace.
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UPS and FedEx are built around delivering overnight to anywhere. That's not Amazon's game, but the company is building an empire in the sky.
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What Amazon needs to do in the air is driven by the ultimate reach and purpose of the courier on the ground. Amazon has two options for the path ahead. Either way, it needs more aircraft. Competing with FedEx and UPS means diversifying into smaller aircraft, while perfecting its own rapid retail delivery means bigger freighters.
