Express Delivery Services
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).
Led by the US, North America is the largest market for express delivery services. Growth in cross-border express delivery volume is much greater in Africa, Asia, and the Middle East.
The US express delivery services industry includes about 15,000 establishments (single-location firms and units of multi-location firms) with combined annual revenue of about $88 billion.
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.
Barriers to entry into the industry vary. National and international delivery services require heavy capital investments in vehicles, material handling equipment, and other technology. Conversely, barriers are low for local market service providers, which rely primarily on labor.
In addition to other public and private business, express delivery services compete against services offered by government-owned postal operators. China Post, Japan Post, La Poste, and the United States Postal Service (USPS) all offer express service.
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
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms