Until they can make their drivers as reliable as Amazon drivers, they will lose. (I know Amazon delivery has a lot of problems, I'm not going to be talking about those in this post)
While it sucks that Amazon drivers are endlessly surveilled, it's a huge boon to people recieving packages to know when their package is coming and to not miss it.
To my knowledge, FedEx and UPS still just give you a delivery window of a whole ass day, and then if they just decide delivering to you is too hard, they just won't.
Seriously just the other day, we were home all day, even had a note on the door to call us, saying we're home, and we'll be out in a moment to sign for it. Nobody rang the bell or called and no note that they ever even came to our doorstep was left. Nope, just got an email notification that they missed us and that now we can pick up our package four days later at an Access Point. Kinda had hoped to get that package on the day it was meant to be delivered for a reason, you know. Kind of fucks up plans when they pull that shit.
They're only just beginning to roll out a competing system. It will be a joke for a long time yet.
Until UPS/FedEx/whoever else fix that aspect of their delivery services, no one will want to fucking use them. The inconvenience factor with those companies is way higher than with Amazon deliveries.