ups-vs-fedex

UPS vs. FedEx

Business / By /
Business Model ElementUPSFedExSimilaritiesDifferencesCompetitive Advantage
Customer SegmentsBusinesses, individuals, e-commerce companiesBusinesses, individuals, e-commerce companiesBoth serve businesses, individuals, and e-commerce companies. UPS has a strong presence in the B2B sector, while FedEx has a significant focus on overnight and express deliveries.UPS’s emphasis on serving a wide range of businesses and e-commerce companies. FedEx’s focus on overnight and express deliveries in addition to broader customer segments.Broad Customer Base (Both), B2B Focus (UPS), Express Delivery (FedEx).
Value PropositionReliable delivery, global reach, extensive service portfolioSpeed, time-definite deliveries, cutting-edge technologyBoth emphasize reliable delivery services. UPS offers global reach and an extensive service portfolio. FedEx focuses on speed, time-definite deliveries, and innovative technology.UPS’s value proposition includes its extensive global reach and a wide range of services. FedEx’s emphasis on time-definite deliveries and innovative technology.Global Reach and Services (UPS), Time-Definite Delivery (FedEx).
ChannelsGlobal network of hubs, depots, and drop-off pointsGlobal network of hubs, depots, and drop-off pointsBoth utilize a global network of hubs, depots, and drop-off points. Their services are accessible through physical locations and digital platforms.UPS’s extensive network for package pickup and drop-off. FedEx’s strong presence in overnight and express deliveries through its network.Extensive Network (Both), Overnight Services (FedEx).
Customer RelationshipsBusiness contracts, individual customers, loyalty programsBusiness contracts, individual customers, loyalty programsBoth maintain customer relationships through business contracts, individual customers, and loyalty programs. UPS offers customer-specific solutions. FedEx provides specialized services.UPS’s emphasis on customized solutions for businesses. FedEx’s specialized services and technological innovations.Customized Solutions (UPS), Technological Innovations (FedEx).
Key ActivitiesPackage sorting, transportation, last-mile deliveryPackage sorting, transportation, last-mile deliveryBoth engage in package sorting, transportation, and last-mile delivery. UPS focuses on ground and air transportation. FedEx has a strong emphasis on air transport and express services.UPS’s focus on ground transportation and extensive international reach. FedEx’s strength in air transportation and express services.Ground Transportation (UPS), Air Transport (FedEx).
Key ResourcesFleet of vehicles, transportation infrastructure, technologyFleet of vehicles, transportation infrastructure, technologyBoth rely on fleets of vehicles, transportation infrastructure, and technology. UPS has a substantial ground network. FedEx boasts an extensive fleet of cargo aircraft and a tech-driven approach.UPS’s extensive ground network and global reach. FedEx’s robust air fleet and technological advancements.Ground Network (UPS), Air Fleet and Technology (FedEx).
Key PartnershipsSuppliers, technology partners, retail storesSuppliers, technology partners, retail storesBoth collaborate with suppliers and technology partners. UPS partners with retail stores for convenient package pickup and drop-off. FedEx has partnerships for drop-off locations and tech collaborations.UPS’s use of retail stores for added convenience. FedEx’s focus on partnerships for drop-off locations and technological collaborations.Retail Convenience (UPS), Drop-off Partnerships (FedEx).
Revenue StreamsPackage delivery fees, contract-based services, retail revenuePackage delivery fees, contract-based services, retail revenueBoth generate revenue through package delivery fees, contract-based services, and retail revenue from their stores and drop-off locations. UPS has a strong presence in B2B contracts. FedEx emphasizes B2C and e-commerce.UPS’s revenue from extensive B2B contracts. FedEx’s revenue from a focus on B2C, e-commerce, and time-definite deliveries.B2B Contracts (UPS), Time-Definite Deliveries (FedEx).
Cost StructureOperational costs, technology investments, labor expensesOperational costs, technology investments, labor expensesBoth manage operational costs, technology investments, and labor expenses. UPS invests in its extensive ground fleet. FedEx allocates resources to maintain its air fleet and innovative tech.UPS’s focus on an extensive ground fleet and ground transportation. FedEx’s emphasis on air transportation, express services, and technology investments.Ground Operations (UPS), Air Transport and Technology (FedEx).
  • In 2018, FedEx’s revenue was $65 billion, while UPS’s revenue was higher at $71.86 billion.
  • In 2019, both companies experienced revenue growth, with FedEx reaching $69.69 billion (an increase of 7.2% compared to 2018) and UPS rising to $74.09 billion (an increase of 3.1% compared to 2018).
  • In 2020, FedEx’s revenue slightly decreased to $69.22 billion (a decline of 0.7% compared to 2019), while UPS’s revenue grew significantly to $84.63 billion (an increase of 14.2% compared to 2019).
  • In 2021, both companies saw substantial revenue growth, with FedEx reaching $83.96 billion (an increase of 21.3% compared to 2020) and UPS growing to $97.29 billion (an increase of 15% compared to 2020).
  • In 2022, both companies continued their revenue growth trend, with FedEx at $93.51 billion (an increase of 11.4% compared to 2021) and UPS at $100.33 billion (an increase of 3.1% compared to 2021).

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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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