Business Model Element | UPS | FedEx | Similarities | Differences | Competitive Advantage |
---|---|---|---|---|---|
Customer Segments | Businesses, individuals, e-commerce companies | Businesses, individuals, e-commerce companies | Both 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 Proposition | Reliable delivery, global reach, extensive service portfolio | Speed, time-definite deliveries, cutting-edge technology | Both 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). |
Channels | Global network of hubs, depots, and drop-off points | Global network of hubs, depots, and drop-off points | Both 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 Relationships | Business contracts, individual customers, loyalty programs | Business contracts, individual customers, loyalty programs | Both 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 Activities | Package sorting, transportation, last-mile delivery | Package sorting, transportation, last-mile delivery | Both 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 Resources | Fleet of vehicles, transportation infrastructure, technology | Fleet of vehicles, transportation infrastructure, technology | Both 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 Partnerships | Suppliers, technology partners, retail stores | Suppliers, technology partners, retail stores | Both 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 Streams | Package delivery fees, contract-based services, retail revenue | Package delivery fees, contract-based services, retail revenue | Both 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 Structure | Operational costs, technology investments, labor expenses | Operational costs, technology investments, labor expenses | Both 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).