In this article, we discuss the 12 biggest delivery companies in the world. If you want to read about some more delivery companies, go directly to 5 Biggest Delivery Companies In The World.
It is remarkable how fast the delivery industry is evolving. In developing countries in Asia, to quote an alarming example, life-saving ambulances take longer to arrive than food or e-commerce deliveries. The sector seems in sync with the rapidly changing tech side and is adapting to new inventions, like drone delivery, faster than other parts of the business world. Consulting firm McKinsey estimates that the pandemic has more than doubled the size of the delivery sector in just a year, compared to historical 8% growth figures for the preceding year.
Most of the success of the delivery sector can be attributed to the evolution of business models. For example, the advent of same hour, same day, and next day delivery, the use of a single fleet, multi-fleet, crowdsourced fleets, and in-house fleets, as well as deliver from store, curb-side pickup, and delivery from robotic warehouses, and other innovations. Some of the top firms in the sector include Uber Technologies, Inc. (NYSE:UBER), Walmart Inc. (NYSE:WMT), and Amazon.com, Inc. (NASDAQ:AMZN).
McKinsey claims that even as the delivery space evolves, there are still macro considerations that continue to shape the economic structure. These include brand, real estate, operating efficiency, breadth of offerings, changing consumer habits, and potential regulatory constraints. Per the consulting firm, these factors will together determine which stakeholders win or lose as the industry develops, including possible changes to how delivery workers are compensated and how a cost-intensive business that is low-margin and scale-driven grows profitable.
Explosive Growth Potential in Online and Food Delivery
The trends in the online ordering and food delivery space deserve a special mention in the delivery industry since they offer investors explosive growth potential. In the past five years, online food ordering and restaurant deliveries have increased at an annual rate of 20%. This increase has come despite a gradual increase in the cost of delivery. These rates will climb to $220 billion by 2025, representing almost 40% of the total restaurant sales. 42% of restaurant orders are now being placed online, according to conservative estimates.
For context, the annual growth rate of the food industry is about 3.7%, while online ordering and food delivery are growing at an annual rate of about 15% to 20%. Despite these impressive numbers, customer retention remains a key problem for the biggest delivery companies. This is important because customer retention is inextricably linked to revenue growth. According to research conducted at Harvard Business School, a mere 5% increase in customer retention can help you raise profits up to 95%.
Despite challenges, investors continue to pour money into the delivery sector, attesting to the long-term potential of the business. Delivery firm Wolt raised $530 million in January 2021, REEF Technology raised $700 million in November 2020, Rebel Foods raised $26 million in July 2020, Uber purchased Postmates for $2.6 billion in December 2020, and Just Eat Takeaway acquired Grubhub for $7.3 billion in June 2021. DoorDash and Deliveroo recently had IPOs in December 2020 and March 2021. Big tech firms are investing in the space too.
Key Trends Shaping The Delivery Sector
Some of the top trends expected to shape the future of the delivery space include increased third party deliveries, the rise of in-house restaurant delivery fleets, the prioritizing of delivery data tracking, the entry of tech giants moving into food delivery, the rapid growth of online grocery, and the rise in food delivery subscriptions. A lot of these trends have a larger backdrop related to the increasing proliferation of smart devices and the internet, or the rise of the digital world, that a lot of the younger generation is already used to.
Per McKinsey, geographic competition among delivery giants will be one of the biggest battlegrounds in the industry over the next few years. The commission rates for restaurants are also another important consideration since they are an important source of revenue for many delivery applications. The consulting firm has underlined that delivery platforms are poised to generate profits at scale if they can unlock the logistics, operational requirements, and challenges of last-mile delivery.
For customers, these challenges and growth drivers will result in better service experiences. The increased competition among businesses will lead to creative revenue models. The delivery sector is one of the many spaces where small and medium businesses can continue to thrive and expand despite big tech investment. This is because of the emergence of low-cost technology that can help underdogs in the industry just as much as big tech firms. The delivery sector is no doubt one of the most exciting spaces to watch in the next few years.
Our Methodology
These were picked from a careful assessment of the delivery industry. The details of each delivery company are mentioned alongside a discussion around top firms in the sector in order to provide readers with some context for their investment decisions.
Rasica/Shutterstock.com
12. Blue Dart Express
Blue Dart Express is an Indian logistics company based in Mumbai. The company registered a revenue of INR 3,288 billion in FY2021. It also has a cash-on-delivery option for courier services. DHL is one of the major shareholders in Blue Dart Express.
Just like Uber Technologies, Inc. (NYSE:UBER), Walmart Inc. (NYSE:WMT), and Amazon.com, Inc. (NASDAQ:AMZN), Blue Dart Express is one of the best delivery companies to watch.
11. Royal Mail
Royal Mail is a UK-based mail and courier service with headquarters in London. Within the UK, it offers same-day delivery of couriers and mail. Additionally, it offers Guaranteed Special Delivery for residential addresses between the hours of 9am and 1pm. For foreign shipments to be accepted for shipping, the weight limit is 2kg. While international economy shipping might take up to two weeks, international standard delivery can take anywhere from three to five days.
10. Yamato Holdings
Yamato Holdings is a delivery and logistics provider based in Tokyo. The company currently has 216,873 employees and extends its services from Japan and North America to the global level. With a market share of 41%, it is among the biggest door-to-door delivery services in Japan and faces stiff competition from Sagawa Express and Nippon Express.
9. Delhivery
Delhivery is an Indian supply chain and logistics company, employing over 66,000 people. Rivigo, Shiprocket, and Omnibiz are Delhivery’s top competitors. As of 2021, the company had more than 85 fulfilment centres, 24 automated sorting facilities, 70 hubs, 7,500 partner facilities, and 3,000 direct delivery facilities. Giving e-commerce businesses third-party logistics and delivery services accounts for almost two-thirds of its revenue. It is headquartered in Gurgaon.
8. TFI International
TFI International is a Canadian company, headquartered in Saint-Laurent, and employs over 28,286 people. The company provides logistics and transportation services in Canada, the USA, and Mexico. The firm generated a revenue of $7.22 billion in 2021, and its Growth in Revenues (YoY) stands at 75.44%. JB Hunt Transport Inc, Swift Transportation Co, and Werner Enterprises Inc are some of the main competitors.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in TFI International, with 433,784 shares worth more than $46 million.
In its Q2 2021 investor letter, LRT Capital Management, an asset management firm, highlighted a few stocks and TFI International Inc. (NYSE:TFII) was one of them. Here is what the fund said:
“TFI International Inc. (NYSE:TFII) (formerly known as Transforce) is a recent addition to our portfolio – it is a Canadian logistics company with exceptional management operating in a consolidating industry. TFII came to our attention when they announced their purchase of the US operations of UPS Freight on January 25th, 2021. The company has a long history of growth through acquisition. Long time CEO Alain Bedard is fond of telling investors that he would rather own Scotiabank and get a 3% dividend than make deals that result in 3% returns57. This Canadian company also recently dual-listed in the United States.
UPS Freight, recently acquired by TFI International Inc. (NYSE:TFII), is a less-than-truckload (LTL) operation. LTL operations can build scale-based cost advantages as they require the consolidation of shipments in local hubs. This lends LTL operators to develop competitive moats based on local network density creating barriers to entry, as opposed to pure long-term trucking which is open to competition from anyone able to lease a truck. Pure play LTL companies such as SAIA, Inc. (SAIA) and Old Dominion Freight Line (ODFL) have historically generated very attractive returns for shareholders. Prior to the announced acquisition TFI already generated excellent returns for shareholders through very efficient operations and good capital allocation. Through the acquisition of UPS Freight US, the company immediately became one of the largest players in the US LTL market. The relatively low price paid for the asset (5.3x EBITDA pre-synergies, and the fact that UPS is taking a $500 million accounting charge on the deal) suggests TFII got a good deal. ODFL and SAIA both trade at over 15x EV/EBITDA.
We expect earnings to rise sharply at TFI International Inc. (NYSE:TFII) over the next twelve months as the economy accelerates post-Covid. We are currently also long shares of Saia, Inc. (SAIA), the LTL operator headquartered in Georgia, based on the same investment thesis. Shares of Saia, Inc., are up +25 % year-to-date and +87.3% over the past twelve months. Shares are +118.42% year-to-date and +165.39% over the past twelve months.”
7. Poste Italiane
Poste Italiane is an Italian company that provides financial, postal, insurance, and logistics services within Italy. The company, headquartered in Rome, operates 12,761 post offices in Italy and employs 119,000 people. The company’s gross profit margin stands at 11.89%. The company has recently acquired LIS Holding, a payments system services company.
6. ZTO Express
ZTO Express provides logistics and delivery services in China. The company was founded in 2002 and has 23,865 employees currently. The company’s earnings per share for the first fiscal quarter of 2022 were $0.20. For the second fiscal quarter of 2022, the EPS was $0.33. It offers courier delivery in 5-8 days and 8-10 days, respectively, to Europe, North and South America. It may carry a wide range of materials, including cosmetics, lithium batteries, electronic devices, and appliances, etc. ZTO Express can make duty-free doorstep deliveries and clear customs for overseas couriers.
Among the hedge funds being tracked by Insider Monkey, Australia-based investment firm Platinum Asset Management is a leading shareholder in ZTO Express, with 15 million shares worth more than $420 million.
Alongside Uber Technologies, Inc. (NYSE:UBER), Walmart Inc. (NYSE:WMT), and Amazon.com, Inc. (NASDAQ:AMZN), ZTO Express is one of the top delivery stocks to buy now according to hedge funds.
Click to continue reading and see 5 Biggest Delivery Companies In The World.
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Disclosure. None. 12 Biggest Delivery Companies In The World is originally published on Insider Monkey.
FAQs
12 Biggest Delivery Companies In The World? ›
1. UPS. UPS is a delivery company that handles shipping and logistics solutions for both businesses and individuals. Originally founded in 1907, UPS has since grown to become the largest courier company in the US and one of the biggest in the world, with a presence in over 200 countries.
Who is the largest delivery company in the world? ›1. UPS. UPS is a delivery company that handles shipping and logistics solutions for both businesses and individuals. Originally founded in 1907, UPS has since grown to become the largest courier company in the US and one of the biggest in the world, with a presence in over 200 countries.
What is the biggest parcel delivery company? ›UPS, United Parcel Service, is the largest courier service company in the world regarding revenue.
What is the biggest delivery company US? ›1. FedEx Courier Company In The United States Of America. Established in 1971, FedEx is one of the most well-established and largest courier companies across the globe. It has operations in 220+ countries, employing almost 600,000 people, and it operates out of 650+ airports to connect 12.5 million packages daily.
What is the best delivery company in USA? ›- Best Overall: United States Postal Service.
- Best for Small Packages: Sendle.
- Best for Large Packages: UPS.
- Best for International Shipping: DHL Express.
- Best for e-Commerce Business: ShipBob.
- Best for Quick Shipping: FedEx.
- Best Affordable Option: EasyPost.
Fedex and UPS are the largest global courier delivery services; FedEx has a net income of about $2 billion on revenues of $42 billion while UPS is larger, with a net income of about $3 billion and revenues of $53 billion.
Is Amazon bigger than UPS? ›...
The competitive threat of “free” shipping.
| Amazon | UPS |
|---|---|
| Revenue (net sales) last year: $469.82 billion | Revenue last year: $97.29 billion |
In 2020, Amazon surpassed FedEx in terms of number of packages delivered — 4.2 billion compared to FedEx's 3.3 billion, according to Pitney Bowes data — and started to gain on UPS and the United States Postal Service: Amazon ships 21% of packages in the US, UPS ships 24%, and USPS ships 38%, the data showed.
Which delivery company is best in the world? ›UPS is a world-renowned courier company that offers comprehensive logistics and courier delivery services to ecommerce shippers. It is based in Georgia, USA, and has courier operations in 220+ countries and regions worldwide.
Who has the fastest package delivery? ›Priority Mail Express is the fastest mail service offered by the Postal Service. It provides guaranteed 1-Day or 2-Day expedited service by 3 p.m. for any mailable matter and includes $100 of insurance coverage. Priority Mail Express delivery is offered 365 days a year in many locations.
Is UPS bigger than USPS? ›
USPS is designed to ship smaller packages cost-effectively within the United States, while UPS is intended for shipping larger parcels worldwide. Both USPS and UPS offer tracked services for international shipping.
Who is FedEx biggest competitor? ›United Parcel Service (UPS) is a global package delivery company that is the largest FedEx competitor. It was founded in 1907 and has since become one of the most well-known shipping companies in the world. UPS has a wide range of shipping offerings, such as ground delivery, air freight, and international shipping.
Is UPS or USPS bigger? ›Analyze the pricing and services of the top 3 shipping companies to understand which best suits your business. In America, shipping is synonymous with UPS or FedEx. Though the U.S. Postal Service (USPS) is larger by almost every measure, its package shipping program is no bigger than either of the major businesses.
What are the main shipping companies in USA? ›- UPS Inc.
- FedEx Corp.
- XPO Logistics.
- J.B. Hunt Transport.
- Knight-Swift Transport.
- YRC Worldwide.
- Schneider.
- Landstar System.
USPS Priority Mail offers the most inexpensive pricing for parcels weighing 10 lbs and below for 2-3-day shipping.
What is the best carrier for large packages? ›Best Shipping for Oversized Packages: UPS Ground Service
For furniture and other heavy or bulky items, you'll have to look elsewhere than the USPS. Priority Mail through the USPS can't weigh more than 70 pounds. That means UPS or FedEx will be your best bet for oversized packages.
The pay. According to Glassdoor in December 2020, FedEx part-time couriers can expect to earn approximately $18 an hour on average. As for UPS, part-time personal vehicle drivers earn an average wage of approximately $21 an hour.
Why is UPS so much better than FedEx? ›So if you're looking for faster or time-sensitive delivery, FedEx will be the best option. What is this? However, the only exception when UPS is faster than FedEx is in its ground transportation services. UPS Ground tends to ship faster within the US because the carrier has a large fleet of trucks in the country.
Where is the largest UPS hub? ›The airline's primary hub in the United States is at Louisville International Airport, where it built a 5,200,000 square foot facility known as UPS Worldport.
Who is UPS largest customer? ›United Parcel Service and its brown delivery trucks ruled American streets for decades. But Amazon, UPS's largest customer and competitor, could overtake the company as the nation's largest package carrier this year.
Why is UPS losing so many packages? ›
According to UPS, a box being too big or too small, lacking enough cushioning, poorly placed labels, and unclear delivery instructions can lead to lost packages.
Will Amazon overtake FedEx? ›Dave Clark, CEO of Amazon 's worldwide consumer business, said Monday that the company is poised to become the largest U.S. package delivery service by early 2022, overtaking longstanding shipping rivals UPS and FedEx .
Why did FedEx drop Amazon? ›FedEx says one of the key factors in deciding not to renew its contract with Amazon was because it wanted to focus on the larger e-commerce market. The number of e-commerce packages is expected to grow from 50 million to 100 million a day by 2026.
Why is Amazon not using FedEx? ›Amazon has been increasing the number of packages it delivers itself, and has already reached the point where it delivers half its own packages. By cutting off FedEx, Amazon is giving itself room to grow its own delivery revenue.
When did FedEx lose Amazon? ›FedEx (FDX) stopped carrying Amazon (AMZN) shipments as part of its express business in June, and Amazon (AMZN) ended its contract with FedEx (FDX) Ground in August. FedEx (FDX) Ground is the company's lower priced service, which delivers to homes and businesses.
What is the oldest delivery company in the world? ›Modern delivery services originated in the US
In fact, the first official package delivery company in the world is considered to be Wells Fargo, which opened its doors in 1852.
Cons of FedEx
The biggest con of FedEx is the cost of shipping. Compared to UPS and USPS, FedEx is far and away the most expensive major carrier in the United States.
For domestic services within the United States, USPS is usually faster than FedEx with parcels being delivered in less than 2 days. However, for international deliveries, FedEx is usually preferred among shippers due to their wider network and expertise in overnight shipping.
Is UPS or USPS more careful? ›After crunching the data and averaging the number of spikes recorded by each carrier on each trip, we found that the USPS has the gentlest touch, with a per-trip average of 0.5 acceleration spikes over 6 g's. FedEx and UPS logged an average of three and two big drops per trip, respectively (see graph, next page).
Who ships the cheapest? ›Again, USPS First Class Mail® is usually considered the most affordable shipping option for parcels weighing under 16 ounces unless USPS Media Mail rates can apply.
Who is bigger DHL or UPS? ›
4.3) DHL has a wider global reach than UPS.
DHL delivers to over 220 countries and territories worldwide. UPS delivers to over 200 countries and territories worldwide.
UPS is a better option for faster delivery and larger packages, whereas USPS is a better option for smaller packages that don't require fast delivery.
Who owns UPS? ›UPS is one of the largest global shipping and logistics companies in the world; as of January 2022, the company's market capitalization is $183.58 billion. Institutional investors make up over 70% of UPS stock ownership. The Vanguard Group Inc. owns over 64 million shares of UPS and has an 8.8% stake in the company.
Who is better than FedEx? ›Usually, UPS is preferred for small packages as it offers lower shipping rates than heavier packages. In addition, UPS Overnight services are cheaper than that of FedEx.
Why is FedEx so cheap? ›FedEx has partnered with the US Postal Service for many eCommerce shipments. FedEx handles most of the shipment transport via jet, then hands off the last mile delivery to USPS for final delivery. This helps FedEx to reduce costs and accelerate delivery times for domestic shipping.
What is FedEx called now? ›Parent company FDX is renamed "FedEx Corporation." Services are divided into companies that operate independently yet compete collectively: FedEx Express, FedEx Ground, FedEx Global Logistics, FedEx Custom Critical and FedEx Services.
Who overnights the fastest? ›The fastest overnight delivery option is FedEx First Overnight. You can expect your package or envelope to be delivered by 8 a.m. the next business day in most areas.
Why is UPS so expensive? ›UPS couriers are the fastest shipping option. This service is available 24/7. They estimated the best shipping route based on your destination and all possible shipping methods are used for a timely delivery. Because of the fastest shipping, they are expensive.
Who is bigger DHL or FedEx? ›DHL, often considered the largest logistics company, offers many courier and mail services at both national and international levels. Out of its many exemplary services, some are as follows: DHL Express Easy.
What is the 3rd largest shipping company? ›Who ships the most packages in the US? ›
USPS (United States Postal Service) is the most frequently used shipping method in U.S. e-commerce.
What is the shipping capital of the US? ›| Gilbert, Arizona | |
|---|---|
| Country | United States |
| State | Arizona |
| County | Maricopa |
| Government | |
USPS is cheaper than DHL for overnight shipments if you do not need it to be delivered by the next morning. If you need your parcel to be delivered at the beginning of the next day, DHL may be a bit more expensive, but it pays off since they offer guaranteed delivery within that timeframe.
What is the fastest cheapest shipping? ›For lightweight packages, USPS First Class has the cheapest shipping prices, which start at $4.50 for 2-5 day delivery. For larger packages, USPS Priority Mail is also the most affordable, with prices starting at $8.70 for 1-3 day delivery.
What is the cheapest and fastest delivery service? ›USPS overnight shipping
Among the three major carriers, USPS offers the cheapest overnight shipping option. That's because USPS runs local routes daily, so they don't have to go out of their way to deliver to your end customer.
Verizon has the most nation-wide coverage, while AT&T and T-Mobile are neck and neck, and Sprint is far behind coming in last place. The group of four major cell phone providers in the U.S. is known as the Big Four, and it includes Verizon, T-Mobile, AT&T, and Sprint.
Who is cheapest to ship large packages? ›Cheap freight shipping with FedEx, UPS, and DHL. One of the cheapest ways to send large packages is through freight shipping services. But it's also a good idea to check and compare prices with USPS, FedEx, and DHL. You may get a lower price depending on the weight and class of your products.
What is the biggest size of bulk carrier? ›Bulk carriers come in all sizes, from the smallest ships of only a few hundred tons deadweight to the largest of over 360,000 tons, 340 metres or more in length, 63 metres in beam and with draughts of 23 metres. Many of the problems relating to hold preparation are common to all bulk carriers.
Who is bigger FedEx or Amazon? ›In 2020, Amazon surpassed FedEx in terms of number of packages delivered — 4.2 billion compared to FedEx's 3.3 billion, according to Pitney Bowes data — and started to gain on UPS and the United States Postal Service: Amazon ships 21% of packages in the US, UPS ships 24%, and USPS ships 38%, the data showed.
Who is bigger UPS or DHL? ›As an overview, you might know that the United Parcel Service is one of the largest players in domestic shipping, but it also has many international delivery options as well. DHL is better known for its international shipments, though it provides some limited domestic U.S. delivery service options as well.
Why is FedEx so much better than UPS? ›
FedEx shipping breakdown
FedEx specializes in express and overnight shipping, when you need to send something fast, but it's not quite an emergency. Their standard overnight delivery services are typically marginally less expensive than UPS. FedEx is also the premier carrier for business-to-business deliveries.
Is DHL Faster than FedEx? It depends on the desired route. FedEx shipping service is typically faster for domestic transportation in the US. As for international shipping, the DHL Express service is usually the fastest shipping option with completed deliveries in up to three business days.
Who is UPS biggest customer? ›1. Amazon. One of the top online stores using United Parcel Service (UPS), Amazon is a multinational technology company considered one of the world's most valuable brands. It is the world's largest online retailer and marketplace and has multiple subsidiaries.
Who is DHL biggest competitor? ›- FedEx Logistics.
- UPS Supply Chain Solutions.
- DB Schenker.
- Kuehne + Nagel.
- Ceva.
- Expeditors.
- DSV.
- Panalpina.
DHL became a wholly owned subsidiary of Deutsche Post in 2002. Deutsche Reichspost is succeeded by Deutsche Bundespost. As a government agency, Deutsche Bundespost is responsible for national and international postal services and telecommunications.
What is FedEx largest fleet? ›Current fleet
The FedEx Express fleet is currently the world's largest cargo air fleet, with more than 650 active aircraft (jet and turboprop). The airline is the world's largest operator of the Airbus A300, the ATR 42, the Cessna 208, and the McDonnell Douglas MD-11.
Our FedEx Hub in Memphis, Tennessee
FedEx is the largest private employer in Memphis, as well as the largest tenant of the Memphis International Airport, one of the largest air cargo facilities in the world.