Ava AbbottFedEx is an international courier delivery service company based in Memphis, Tennessee. The company was founded in 1971 by Frederick Wallace Smith, who wrote the concept behind FedEx as a term paper when he was an undergrad at MIT.
In 2020, FedEx was the leading less-than-truckload (LTL) carrier in the US. The company has 239,000 employees and delivers packages, parcels, and goods across 220 countries. In the fiscal year of 2021, the company generated $84 billion in revenues. [1]
FedEx operates through four business segments, FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. More than half of the company’s annual revenue comes from FedEx Express and FedEx Ground.
Like many other organizations, FedEx has to deal with constrained labor markets. The company took a whopping $450 million hit within three months in 2021 due to labor shortages and increased transportation, hiring, and rerouting costs.
With over 15 million shipments daily, FedEx is a logistics powerhouse in its own right. But the company faces stiff competition from UPS, DHL, Kuehne + Nagel, and XPO Logistics. [2]
Here is an in-depth analysis of top FedEx’s competitors and alternatives:
1. United Parcel Service (UPS)
Year founded: 1907
Headquarter: Georgia, Atlanta
UPS is an international logistics and package delivery company that operates via UPS Freight, UPS Airlines, and UPS Store. The company operates in more than 220 countries and makes about 5.5 billion deliveries each year. In 2021, UPS’s revenues rose to $97.29 billion. The logistics specialist has more than 540,000 employees. [3]
Recently UPS focused on improving its services for SMBs to become a leading e-commerce player as small retailers migrate online. This strategy accelerated the adoption of the UPS Digital Access Program, a suite of logistics, shipping, and payment services for businesses.
According to experts, UPS is better suited to handle crises than FedEx. But both companies plan to raise prices in 2022 by 5.9% or more to counter higher labor costs and inflation. UPS is the top FedEx competitor and alternative. [4]
2. DHL
Year founded: 1969
Headquarter: San Francisco, California
DHL is the world’s largest logistics and courier service company, with over 1.5 billion deliveries annually. The company provides parcel delivery, international courier, and express mail in 220 countries.
The company expects a record € 81.74 billion in revenue for FY 2021. DHL had more than 380,000 employees. [5]
The main competitive advantage for DHL over FedEx is its comprehensive service portfolio. DHL offers Express, Post and Packet, Freight, Global Forwarding, eCommerce, and Supply Chain.
But FedEx only provides Express, Ground, Freight, and IT-based logistics solutions. Although FedEx is the leading courier in North America, DHL is synonymous with inter-continental logistics. DHL is FedEx’s top competitor and alternative globally.
3. Kuehne + Nagel
Year founded: 1890
Headquarter: Schindellegi, Switzerland
Kuehne + Nagel is one of the world’s leading logistics and freight forwarding companies. The company has 92,372 employees and serves over 400,000 customers from 109 countries. In 2021, Kuehne + Nagel, the Swiss forwarder generates around CHF 36 billion in revenue.
Kuehne + Nagel’s services include contract logistics and freight forwarding via land, sea, and air. The company also provides IT-based logistics solutions.
In 2021, Kuehne + Nagel acquired Apex, a freight wholesaler. This strategic acquisition boosts the company’s competitive edge over FedEx. Kuehne + Nagel is one of the best FedEx alternatives in airfreight and sea freight forwarding. [6]
4. DB Schenker
Year founded: 2007
Headquarter: Essen, Germany
DB Schenker is the logistics arm of German rail operator Deutsche Bahn AG. The company offers air, land, sea freight, and contract logistics and employs more than 72,000 people in 140 countries. In 2021, DB Schenker posted a revenue turnover of $16.4 billion.
DB Schenker is one of the leading integrated logistics services in the Americas. The company has 10,000 employees in 123 locations across North and South America. In Oct 2021, DB Schenker received the Cisco 2021 Excellence in Global Logistics award. DB Schenker is a formidable FedEx competitor. [7]
5. XPO Logistics
Year founded: 1989
Headquarter: Greenwich, Connecticut
XPO Logistics is an American multinational logistics, trucking, and brokerage company. The company serves about 50,000 customers from more than 32 countries globally. In 2021, XPO had around 100,000 employees and made over $12.8 billion in annual revenue.
In Aug 2021, XPO Logistics completed the spin-off of its global contract logistics segment to create GXO Logistics. XPO’s truck brokerage operation offset losses from its less-than-truckload (LTL) operation.
The brokerage business grew by 37%, and its top 20 customers increased their total volumes by 45%. The company also offers XPO Connect, a tech-driven solution that matches shippers with available transportation. XPO Logistics is a worthy FedEx competitor. [8]
6. GXO Logistics
Year founded: 2021
Headquarter: Greenwich, Connecticut
GXO Logistics is the world’s largest third-party pure-play contract logistics provider. In Dec 2020, XPO Logistics commenced the spin-off of its global contract logistics segment. The process was completed in Aug 2021, marking the birth of GXO Logistics Inc. GXO has 66,000 employees and expects $7.6 billion to $7.8 billion in revenue for the full year 2021.
Although GXO Logistics is less than a year old, it has decades of experience as XPO’s spin-off. GXO Logistics acquired Kuehne + Nagel’s business in the UK and Ireland in 2021. The main competitive advantage for GXO over FedEx is its tech-driven operations, leveraging automation and intelligent machines, predictive analytics, and pricing algorithms. GXO Logistics is one of the most innovative FedEx competitors. [9]
7. Yellow Corp
Year founded: 1929
Headquarter: Overland Park, Kansas
Formerly YRC Worldwide, Yellow Corp is one of the largest logistics companies in North America. The US government controls a 30% stake in the company. In 2021, Yellow Corp had 29,000 employees and $5.12 billion in revenue.
The company recently changed its name from YRC Worldwide to Yellow Corp. The rebranding is part of its transformation into a super-regional LTL freight carrier.
The plan involves bolstering its operations through property divestitures and investments in new equipment with funds from a $700 million federal loan. Yellow Corp is one of the best FedEx alternatives for LTL services. [10]
8. CEVA Logistics
Year founded: 2007
Headquarter: Marseille, France
CEVA Logistics is a global logistics and supply chain company. The company offers freight management and contract logistics and has 78,000 employees. According to projections, CEVA will hit $5.4 billion in sales in 2021.
In Apr 2019, CMA CGM acquired CEVA Logistics from Apollo Management LP. CMA CGM bolstered the contract logistics operations of CEVA Logistics in Dec 2021 by acquiring Ingram Micro’s CLS for $3 billion. This acquisition makes CEVA Logistics the world’s fourth-largest contract logistics provider.
CLS will bring in annual revenue of $1.7 billion, 11,500 employees, and 59 warehouses. Combined with CEVA Logistics, the new company will have around 90,000 employees across nearly 1,100 sites in 160 countries. With CMA CGM backing, CEVA Logistics has the resources to challenge FedEx for market share. [11]
9. SNCF Group
Year founded: 1938
Headquarter: Saint-Denis, France
SNCF is France’s national state-owned railway company that offers freight and transportation. The company also provides logistics services and innovative supply chain solutions. SNCF had 275,000 employees and generated $34 billion in revenue.
In 2021, SNCF Group’s freight forwarding and contract logistics arm, Geodis, experienced a 21.4% growth in revenue to $5 billion. Geodis chartered multiple sea vessels between Shanghai and Hamburg for the first time in 2021.
The company also recorded a 23% rise in e-commerce revenue and a 31% increase in freight forwarding activities. SNCF’s Geodis is one of the fastest-growing FedEx competitors. [12]
10. United States Postal Service (USPS)
Year founded: 1775
Headquarter: Washington, DC
USPS is a self-governing postal service that operates as a US agency under the federal government. The agency has a monopoly on letter delivery in the US. But it also competes with FedEx and other couriers in the package delivery sector.
In FY 2021, the USPS had 633,108 employees and made $77.06 billion in revenue with a net loss of $4.93 billion. In 2019, the USPS launched its self-driving trucks to haul mail across the US. This project is part of the agency’s modernization of its outdated network. In Aug 2021, the USPS had to find a new route to deliver 300 million packages to recipients.
The agency acknowledges that its outdated infrastructure cannot cope with increased demand for package delivery. The USPS has enough resources to fend off FedEx. [13]
11. Blue Dart Express
Year founded: 1983
Headquarter: Mumbai, Maharashtra, India
Blue Dart Express is India’s express air and logistics company that provides courier delivery services. The company is a subsidiary of DHL and operates a cargo airline, Blue Dart Aviation. For the fiscal year of 2021, Blue Dart Express accumulated $444,587 in revenue.
Blue Dart Express delivers consignments to over 35,000 locations in India. It also provides services in more than 220 countries via DHL.
In 2021, shares of Blue Dart Express hit a new high of Rs 5,526.25 after its parent company DHL Group posted a record annual profit. Blue Dart Express is the best FedEx alternative in India. [14]
12. C.H. Robinson
Year founded: 1905
Headquarter: Eden Prairie, Minnesota
C.H. Robinson is a global transportation and third-party logistics company. With over 19 million shipments annually, C.H. Robinson is one of the world’s largest logistics platforms. The company has about 11,500 employees and manages $26 billion in freight annually.
The main competitive advantage for C.H. Robinson over FedEx is its combination of multimodal transportation management systems.
The company leverages IT to deliver smarter solutions to more than 105,000 customers and 73,000 contract carriers. Its supply chain management technology enables faster improvements to customers’ businesses. C.H. Robinson is one of the top FedEx competitors. [15]
13. Purolator
Year founded: 1960
Headquarter: Mississauga, Canada
Purolator is Canada’s leading integrated freight, package, and logistics service. The company has more than 13,000 employees and operates outside Canada through its subsidiary Purolator International. Purolator earned $2.2 billion in revenue.
The backing of the Canadian government via Canada Post gives Purolator a significant advantage over FedEx. During the 2021 holiday season, Purolator delivered a record 54 million packages across Canada.
The company achieved this milestone by tripling the number of contactless drop-off and pick-up locations, adding parcel lockers for 24/7 access, and hiring more than 2,400 new employees. Purolator is one of the best FedEx alternatives in Canada. [16]
14. General Logistics Systems (GLS)
Year founded: 1999
Headquarter: Oude Meer, Netherlands
GLS is one of the largest courier service providers in Europe, founded after the merger of Royal Mail and German Parcel GmbH. The British-owned logistics company operates in 41 European countries, the US, and Canada. In 2021, GLS had 19,000 employees and earned $4 billion in revenue. [17]
Both FedEx and GLS offer courier services. FedEx has over 15 million shipments daily versus 634 million parcels per year for GLS. But GLS has more than 200,000 customers in Europe, Canada, and the US. Overall, GLS is one of the top FedEx competitors in the European market.
15. DPD Group
Year founded: 1999
Headquarter: Issy Les Moulineaux, France
DPD Group is the second-largest parcel delivery network in Europe. The company was founded in 2015 after GeoPost acquired several European courier companies, including Parceline, Interlink, and Seur International. In 2020, the company had 77,000 employees and €11 billion in revenue.
DPD Group’s parcels and express businesses saw a significant increase in volumes.
The company now delivers more than 7.5 million parcels daily. GeoPost’s DPD Group is a worthy alternative to FedEx for European consumers. [18]
References & more information
- Mazareanu, E. (2021, Aug 31). FedEx’s revenue 2009-2021. Statista
- Samaha, L. (2022, Jan 10). Why FedEx Shares Were Flat in 2021. The Motley Fool
- UPS (2021, Oct 26). UPS Releases 3Q 2021 Earnings. Globe Newswire
- Foelber, D. (2021, Nov 16). 5 Reasons UPS Deserves to Be at an All-Time High. The Motley Fool
- Solomon, M. (2021, Nov 4). Deutsche Post DHL posts sizzling Q3 results raises 2021, 2023 outlooks. Freightwaves
- Pasetti, A. (2021, Oct 20). Kuehne + Nagel – Another dose of M&A to hit the spot. The Loadstar
- DB Schenker (2021, Oct 4). DB Schenker Receives Cisco 2021 Excellence in Global Logistics Award. Supply Chain Quarterly
- Whiteman, L. (2021, Nov 6). XPO Logistics Stuck in the Slow Lane After Trucking Mishap. The Motley Fool
- Bowman, J. (2021, Nov 4). GXO Logistics Is Ready for the Holidays. The Motley Fool
- Ronan, D. (2021, Feb 5). YRC Becomes Yellow and Continues Rebuilding Its Fleet. TT News
- Marle, G. (2021, Dec 9). CMA CGM in $3bn contract logistics boosts for Ceva with Ingram Micro buy. The Loadstar
- Transport Intelligence (2021, Aug 9). SNCF Group revenues up by 13.7% in H1-21. TI News
- Whiteman, A. (2021, Aug 16). ‘Outdated’ network blamed for huge revenue loss at USPS logistics unit. The Loadstar
- SI Reporter (2021, Mar 12). Blue Dart extends rally as parent company posts record profit for CY20. Business Standard
- Ives, C. (2021, Dec 10). H. Robinson Amends Dividend Record Date. Business Wire
- Purolator (2021, Oct 14). Purolator to pick up and deliver a record 54 million packages. Newswire
- Mazareanu, E. (2021, Jun 23). General Logistics Systems (GLS): revenue 2012-2020. Statista
- GeoPost (2021, Jul 30). First Half-Year 2021 Results of Le Groupe La Poste. Actus Newswire
- Featured image by Liam Kevan
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