FedEx, UPS & DHL Compete for Global Market Share in Shipping and Logistics

The parcel delivery business is one of the most competitive in the world, with a small handful of companies battling for market share. Competition escalated when firms with leading niche positions began to branch out into adjacent services. Many years ago in the U.S., for example, United Parcel Service (UPS) ruled supreme in ground delivery services, while FedEx was the undisputed leader in express air package delivery. But when UPS began offering overnight air services and FedEx started its ground delivery business, the battle for market share commenced in earnest. In addition, both companies now have thousands of retail locations to serve as package drops, boxing and printing stations. Moreover, UPS and FedEx both began offering logistics services to ease supply chain problems, and they introduced sophisticated web sites for customers who want online package tracking, labeling, billing and pickup scheduling.

In the international market, competition among package delivery providers is even more fierce. Outside domestic borders, UPS and FedEx are confronted with a number of leading foreign companies, first and foremost being DHL Worldwide Express, which is owned by German company Deutsche Post AG.

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FedEx, UPS & DHL Compete for Global Market Share in Shipping and Logistics, Business and Industry Trends Analysis

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