FedEx Competitors

Business / By / November 2, 2023

FedEx faces competition from various global logistics companies, including DHL, UPS, TNT Express, and USPS. In the e-commerce logistics sector, its competitors include Amazon Logistics, Cainiao (Alibaba Group), and Delhivery. These companies offer a range of services such as express mail, package delivery, supply chain management, and e-commerce logistics. FedEx operates in a competitive market where efficient logistics and delivery services are crucial.

CompetitorDescriptionKey InsightsCompetitive OverlapDifferentiation
United Parcel Service (UPS)A multinational package delivery and supply chain management company known for its global logistics services. UPS competes with FedEx in package delivery, logistics, and supply chain management.UPS offers similar package delivery, logistics, and supply chain services, directly competing with FedEx in these segments.Both compete in package delivery, logistics, and supply chain management, providing comprehensive shipping solutions.UPS’s extensive global network and focus on logistics and supply chain management.
DHL ExpressA division of the German logistics company Deutsche Post DHL Group, DHL Express provides international express mail services and logistics. DHL competes with FedEx in international express shipping and logistics.DHL Express specializes in international express shipping and competes with FedEx in segments like global logistics and courier services.Both compete in international express shipping and logistics, offering expedited delivery services worldwide.DHL’s global presence and expertise in international shipping.
United States Postal Service (USPS)The government-operated postal service of the United States, offering mail and package delivery services. USPS competes with FedEx in mail and package delivery within the United States.USPS provides mail and package delivery services within the U.S., overlapping with FedEx in domestic shipping services.Both compete in domestic mail and package delivery, offering various shipping options within the United States.USPS’s role as the national postal service and its extensive network.
Amazon LogisticsAmazon’s in-house logistics and delivery service used to transport packages from Amazon fulfillment centers to customers. Amazon Logistics competes with FedEx in last-mile delivery and logistics services.Amazon Logistics handles last-mile delivery for Amazon packages and competes with FedEx in segments like final package delivery and logistics.Both compete in last-mile delivery and logistics, focusing on the delivery of e-commerce orders to customers’ doorsteps.Amazon Logistics’ integration with Amazon’s e-commerce platform.
USPS (Parcel Select)USPS Parcel Select is a shipping service offered by the United States Postal Service for bulk shipments and e-commerce deliveries. It competes with FedEx in e-commerce logistics and bulk shipping.USPS Parcel Select is used for bulk and e-commerce shipments, competing with FedEx in these segments, particularly in e-commerce logistics.Both compete in e-commerce logistics and bulk shipping, offering cost-effective options for businesses shipping parcels.USPS’s role as the national postal service and its cost-effective shipping solutions.
OnTracA regional package delivery company known for its regional shipping services in the western United States. OnTrac competes with FedEx in regional shipping and last-mile delivery.OnTrac specializes in regional package delivery and competes with FedEx in regional shipping services, especially in the western U.S.Both compete in regional shipping and last-mile delivery, offering local and regional delivery solutions.OnTrac’s focus on the western U.S. and regional delivery network.
PurolatorA Canadian courier and package delivery company known for its domestic and international shipping services. Purolator competes with FedEx in package delivery and logistics in Canada.Purolator offers domestic and international shipping services in Canada, competing with FedEx in segments like package delivery and logistics.Both compete in package delivery and logistics services, particularly within Canada.Purolator’s Canadian market expertise and national network.
TNT ExpressA courier delivery services company, part of FedEx since its acquisition in 2016. TNT Express competes with other global shipping companies in the international express shipping market.TNT Express provides international express shipping services, similar to FedEx’s global shipping operations.Both compete in international express shipping, focusing on global package delivery services.TNT Express’s integration into the FedEx network and global reach.
XPO LogisticsA global provider of transportation and logistics services known for supply chain management and transportation solutions. XPO Logistics competes with FedEx in supply chain management and logistics.XPO Logistics specializes in supply chain management and competes with FedEx in segments like logistics and transportation solutions.Both compete in logistics and supply chain management, offering solutions for businesses to manage their supply chains efficiently.XPO Logistics’ focus on logistics and transportation services.
R+L CarriersA freight shipping and logistics company known for LTL (Less Than Truckload) and TL (Truckload) shipping services. R+L Carriers competes with FedEx in freight shipping and transportation.R+L Carriers offers LTL and TL shipping services, competing with FedEx in segments like freight shipping and transportation solutions.Both compete in freight shipping and transportation, providing options for businesses to transport goods efficiently.R+L Carriers’ specialization in freight services.

Apologies for the confusion. Here’s the text representation of the competitors of FedEx:

Global Logistics Companies:

  • DHL: A global logistics company providing international express mail services.
  • UPS: A package delivery company offering supply chain management and logistics solutions.
  • TNT Express: An international courier delivery services company.
  • USPS: The United States Postal Service, an independent agency of the U.S. federal government.

E-Commerce Logistics:

  • Amazon Logistics: The logistics arm of Amazon providing delivery services for Amazon orders.
  • Cainiao: A Chinese logistics company providing services for Alibaba Group.
  • Delhivery: A logistics and supply chain services company specializing in e-commerce logistics.

Key Highlights:

  • Competition in the Global Logistics Sector: FedEx faces competition from several major global logistics companies, including DHL, UPS, TNT Express, and USPS. These companies offer a range of services, from express mail to supply chain management, creating a competitive landscape for efficient logistics and delivery solutions.
  • E-Commerce Logistics Competition: In the e-commerce logistics sector, FedEx competes with Amazon Logistics, Cainiao (Alibaba Group), and Delhivery. These companies specialize in handling the intricate logistics of e-commerce orders and deliveries, an area crucial for the growing online shopping market.
  • Diversified Services: FedEx’s competitors offer diverse services that include international express mail, package delivery, courier services, and supply chain management. This diversity emphasizes the need for FedEx to maintain a competitive edge across various aspects of the logistics industry.
  • Global Reach: Competitors like DHL and UPS also have a global presence, highlighting the need for FedEx to maintain an extensive international network to effectively serve customers in various regions around the world.
  • Amazon’s Impact: Amazon Logistics poses a unique challenge as it’s closely tied to the world’s largest e-commerce platform. FedEx must navigate the rise of Amazon’s logistics arm while maintaining its own market share and competitive advantages.
  • Evolving Market Dynamics: The logistics industry is evolving rapidly due to advancements in technology, changing customer expectations, and the growth of e-commerce. FedEx must stay agile to adapt to these shifts and continuously innovate to remain competitive.
  • Customer-Centric Approach: As efficient delivery and logistics services become increasingly important, FedEx and its competitors need to prioritize customer satisfaction to retain and attract business clients and individual customers alike.
  • Innovation and Technology: FedEx and its competitors are likely investing in technology-driven solutions such as automation, AI-powered routing, and real-time tracking to enhance efficiency and provide better services to customers.
  • Strategic Partnerships: With the rise of e-commerce giants like Alibaba and Amazon, strategic partnerships and collaborations might play a crucial role in gaining a competitive edge in the logistics industry.
  • Regulatory and Operational Challenges: Global logistics operations are subject to various regulations and operational challenges. FedEx and its competitors need to navigate these complexities while maintaining high service standards.

Related Visual Stories

FedEx Revenue

fedex-revenue
In 2019, FedEx experienced a revenue growth of approximately 7.2% compared to 2018, increasing from $65 billion to $69.69 billion. Despite a slight decrease in 2020 to $69.22 billion, FedEx saw a substantial revenue growth of 21.3% in 2021, reaching $83.96 billion. The positive trend continued in 2022, with revenue increasing by 11.4% to $93.51 billion, showing consistent growth over the years except for 2020.

FedEx Net Income

fedex-profits
FedEx experienced a significant drop in net income from $4.57 billion in 2018 to $0.540 billion in 2019, representing a decrease of approximately 88.2%. In 2020, net income rebounded to $1.28 billion, showing an increase of 137% compared to the previous year. The upward trend continued in 2021, with net income surging to $5.23 billion, which is a 308% increase compared to 2020. However, in 2022, net income decreased to $3.82 billion, a decline of around 27% compared to the previous year.

FedEx Employees

fedex-employees
Between 2019 and 2020, FedEx experienced an increase in the number of employees, with a growth of 2.5% from 239,000 to 245,000. In 2021, the company saw a more significant increase in employees, growing by 18% to reach 289,000. The upward trend in employee numbers continued in 2022, with an increase of 19.4%, bringing the total number of employees to 345,000.

FedEx Revenue Per Package

fedex-revenue-per-package-us
FedEx’s revenue per package experienced a slight increase of 0.8% from 2018 to 2019, growing from $18.40 to $18.54. In 2020, revenue per package decreased by 1.3% to $18.30 compared to the previous year. The downward trend continued in 2021, with a decrease of 2.8% to $17.79 compared to 2020. However, in 2022, revenue per package increased substantially by 13.3% to $20.15, reversing the previous downward trend.

UPS Revenue

ups-revenue
UPS experienced a revenue growth of approximately 3.1% from 2018 to 2019, increasing from $71.86 billion to $74.09 billion. In 2020, the revenue showed a significant increase of 14.2% to $84.63 billion compared to the previous year. The upward trend continued in 2021, with revenue growing by 15% to reach $97.29 billion. In 2022, revenue increased by 3.1% to $100.33 billion, continuing the positive growth trend over the years.

UPS Profits

ups-profits
In 2019, UPS’s net income decreased by 7.3% compared to 2018, falling from $4.79 billion to $4.44 billion. The net income experienced a more significant drop in 2020, decreasing by 69.8% to $1.34 billion compared to the previous year. A substantial rebound occurred in 2021, with net income surging to $12.89 billion, representing an increase of 861% compared to 2020. In 2022, the net income decreased slightly to $11.55 billion, representing a decline of around 10.4% compared to the previous year.

UPS Cost Structure

ups-cost-structure
For the U.S. Domestic Package segment, the revenue in 2022 was $64.2 billion, with an operating profit of $6.99 billion. In the International Package segment, the 2022 revenue was $19.7 billion, while the operating profit reached $4.3 billion. In the Supply Chain Solutions segment, the revenue for 2022 was $16.43 billion, with an operating profit of $1.77 billion.

UPS Average Revenue Per Piece

ups-average-revenue-per-piece
In 2019, UPS’s average revenue per piece (ARP) slightly decreased by 0.3% compared to 2018, moving from $9.86 to $9.83. The ARP experienced a small increase of 0.9% in 2020, rising to $9.92 compared to the previous year. In 2021, the ARP saw a more significant growth of 11.5%, reaching $11.06 compared to 2020. In 2022, the growth trend continued, with the ARP increasing by 9.5% to $12.11 compared to the previous year, indicating an upward trend in the average revenue per piece.

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About The Author

Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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