Companies in this industry provide express delivery and pickup of parcels. Major companies include US-based United Parcel Service (UPS) and Federal Express (FedEx), as well as Aramex (United Arab Emirates), DHL (Germany), and Yamato (Japan).
Demand is driven by business transactions and online consumer spending. The profitability of individual companies depends on price, reliability, quality, and services. Large companies compete by offering a wide range of services. Small companies compete through specialized customer service. The industry is divided into two segments: large networked couriers capable of nationwide and international delivery, and smaller local services that transport packages within a metropolitan area. The courier segment of the US industry is highly concentrated and accounts for most of the industry's revenue; United Parcel Service (UPS) and Federal Express (FedEx) dominate the market. The local segment, which is much smaller, is fragmented.
Products, Operations & Technology
The express delivery industry primarily transports parcels that are small enough to be handled by a single delivery person without the need for special equipment; this differentiates the segment from the freight shipping industry, which handles high volumes of large cargo and requires heavy, specialized equipment. Express delivery and pickup of parcels may be local, intercity, or international depending on the company's capabilities. The largest companies in the industry, which operate extensive networks that allow door-to-door service, are called integrators.