Ava AbbottUnited Parcel Service (UPS) is an international logistics and supply chain management company based in Georgia, Atlanta. The company was founded in 1907 by James E. Casey as the American Messenger Company to deliver telegraphs.
Today, UPS is a Fortune 500 company and one of the largest shipping couriers globally. This American logistics giant has around 543,000 employees and makes about 5.5 billion deliveries each year. UPS’s full-year 2021 revenues increased by 15% to $97.3 billion, with a 13.5% surge in operating margins to $13.2 billion. [1]
UPS operates in more than 220 countries under three segments; UPS Freight, UPS Airlines, and UPS Store. Since 2019, the company has invested in its UPS Digital Access Program. This program offers a suite of e-commerce logistics, shipping, and payment services for SMBs.
In 2022, the company plans to raise prices by 5.9% to counter supply chain issues, higher labor costs, and inflation. UPS also faces stiff competition from new and old logistics providers, including FedEx, DHL, Kuehne + Nagel, and XPO Logistics. [2]
Here is an in-depth analysis of top UPS’s competitors and alternatives:
1. FedEx
Year founded: 1971
Headquarter: Memphis, Tennessee
FedEx is the leading courier and LTL carrier in the US. The company delivers over 15 million shipments daily across 220 countries. In 2021, FedEx had 239,000 employees and generated $84 billion in revenues.
UPS Airlines competes with FedEx Express, with UPS Freight vs. FedEx Freight and FedEx Ground. Both companies face similar challenges in the labor markets, but UPS is better suited to handle crises than FedEx.
In 2021, FedEx recorded a $450 million loss in three months due to labor shortages and increased operational costs. FedEx and UPS are raising prices in 2022 by 5.9% or more due to higher labor costs and inflation. They’re evenly matched across the board, making UPS the top FedEx competitor and alternative. [3]
2. DHL
Year founded: 1969
Headquarter: San Francisco, California
DHL is the world’s largest logistics and courier service company, with around 380,000 employees. The company provides parcel delivery, international courier, and express mail in 220 countries. For the full year of 2021, DHL posted a record $8.9 billion in revenue. [4]
Both DHL and UPS offer air, ground, and sea freight, e-commerce, and supply chain management. But DHL is synonymous with global forwarding, while UPS dominants e-commerce logistics. With over 1.5 billion deliveries annually, DHL is a formidable UPS competitor.
3. DB Schenker
Year founded: 2007
Headquarter: Essen, Germany
DB Schenker is a logistics company that offers air, land, and sea freight. The contract logistics specialist operates under German state-owned rail Deutsche Bahn AG. In 2021, DB Schenker had around 74,200 employees in over 130 countries and accumulated $16.4 billion in revenue. [5]
DB Schenker is committed to reducing its carbon footprint by adopting eco-friendly vehicles and solutions. In Nov 2021, the company ordered almost 1,500 electric trucks from Volta Trucks. DB Schenker received the Cisco 2021 Excellence in Global Logistics award.
It is one of the leading integrated logistics services in Europe. But the company also competes against UPS in North and South America. DB Schenker is one of the best UPS alternatives for contract logistics. [6]
4. United States Postal Service (USPS)
Year founded: 1775
Headquarter: Washington, DC
USPS is an independent US agency under the federal government. The agency delivers letters, parcels, and packages to about 155 million residences, post boxes, and businesses across the US. In 2021, the USPS had 633,108 employees and made $77.06 billion in revenue. The agency has been making losses for 15 consecutive years, including a $4.9 billion loss in 2021.
USPS seeks to invest more than $8 billion in 2022, including about $4.7 billion to build its next-generation delivery vehicle fleet. The postal service will also spend $2.5 billion to upgrade its facilities and processing equipment. These investments will increase USPS’s competitiveness over UPS. USPS has enough resources to challenge UPS. [7]
5. TNT Express
Year founded: 1946
Headquarter: Hoofddorp, Netherlands
TNT Express is a courier service company owned by FedEx. The company delivers parcels, docs, and freight to customers in around 200 countries. In 2021, FedEx proposed to cut 5,500-6,300 jobs in Europe as part of the integration of TNT. As of May 2021, TNT had around 43,000 employees. The company has an annual turnover of over $15 billion. [8]
FedEx acquired TNT for €4.4 billion in 2016 and connected air, road, and ground networks. The acquisition propelled TNT to a top-tier player in Europe. Under the integration plan, TNT will use FedEx’s Roissy-Charles de Gaulle hub as its primary hub.
This strategy will streamline TNT’s operations, increasing its competitive advantage over UPS. As a subsidiary of FedEx, TNT has the resources to compete and grab UPS’s market share. [9]
6. Yellow Corp
Year founded: 1929
Headquarter: Overland Park, Kansas
Yellow Corp is a leading logistics company in North America. The company rebranded from YRC to Yellow Corp as part of its transformation into a less-than-truckload (LTL) freight carrier. In 2021, Yellow Corp had around 29,000 employees and made $5.122 billion in revenue. [10]
The US government controls a 30% stake in Yellow Corp, increasing its access to federal and state logistics contracts. In 2021, Yellow Corp secured a $700 million federal loan under the CARES Act. The company will use the funds to expand its fleet and regional LTL services. Yellow Corp is a worthy UPS competitor. [11]
7. CEVA Logistics
Year founded: 2007
Headquarter: Marseille, France
CEVA Logistics is a global logistics company that offers freight and supply chain management. In Apr 2019, CMA CGM acquired CEVA Logistics from Apollo Management LP. This acquisition increases CEVA’s advantage over the competition. In 2021, CEVA made $5.4 billion in revenue.
In Dec 2021, CMA acquired Ingram Micro’s CLS for $3 billion and integrated it into CEVA’s contract logistics service. CLS brings in annual revenue of $1.7 billion, 59 warehouses, and 11,500 employees. CEVA is now the fourth-largest contract logistics provider globally, with over 90,000 employees. CEVA Logistics is a formidable UPS competitor. [12]
8. C.H. Robinson
Year founded: 1905
Headquarter: Eden Prairie, Minnesota
C.H. Robinson is a global third-party logistics company that offers transportation and supply chain management. The company serves around 105,000 customers and 73,000 contract carriers and delivers over 19 million shipments annually.
In 2021, C.H. Robinson had 11,000 employees and reported a net income of $844.2 million on $23.1 billion revenue. [13]
Both C.H. Robinson and UPS offer supply chain management. But C.H. Robinson also provides a suite of services via a digital freight platform. Its “tech-plus” strategy combines transportation-related technologies with expertise to streamline customers’ supply chains and operations. C.H. Robinson is the most innovative UPS competitor. [14]
9. Mainfreight
Year founded: 1978
Headquarter: Auckland, New Zealand
Mainfreight is a logistics company that offers transport, freight forwarding, managed warehousing, and supply chain management. In fiscal 2021, Mainfreight’s revenues increased 14.5% to $3.54 billion. The company also recorded a 27% surge in net profit to $188.11 million. [15]
Both Mainfreight and UPS provide freight forwarding and supply chain management. Mainfreight expanded its operations and market presence via acquisitions to become one of the largest freight companies globally.
Its global supply chain business has over 250 branches across America, Asia-Pacific, and Europe. Mainfreight is one of the top UPS competitors in supply chain management.
10. Purolator
Year founded: 1960
Headquarter: Mississauga, Canada
Purolator is a Canadian logistics company owned by Canada Post. The company offers freight and package delivery and operates globally via Purolator International. With $2 billion in revenue and 13,000 employees, Purolator is dwarfed by UPS several times over.
Most Canadians rely on Purolator to deliver their packages. So, the company combines different strategies to fulfill this mission during the high-peak season.
In 2021, Purolator delivered a record 54 million packages during the holidays by tripling drop-off locations and hiring more employees. With the backing of Canada Post, Purolator can fend off UPS in the Canadian market. It is the best UPS alternative for package delivery in Canada. [16]
11. DPDgroup
Year founded: 1999
Headquarter: Issy Les Moulineaux, France
DPDgroup (Dynamic Parcel Distribution) is a parcel delivery company owned by La Poste, a French postal service. Its parent company operates the second-largest delivery network in Europe. In 2020, DPD Group delivered 1.9 billion parcels worldwide and generated over $11 billion in revenues.
Both DPDgroup and UPS offer international parcel delivery services. But DPDgroup caters to a few countries outside Europe either directly or through partnerships.
The company specializes in the express road-based market, while UPS operates an interconnected air, road, and ground network. DPDgroup’s parcel delivery volume surged by over 25.4% in the first half of 2021. With 77,000 employees, DPDgroup is a formidable UPS competitor in Europe in its own right. [17]
12. Geodis
Year founded: 1938
Headquarter: Saint-Denis, France
Geodis is the freight forwarding and contract logistics arm of SNCF Group, France’s state-owned railway company. Its parent company also provides supply chain solutions that compete against UPS’s offering. In 2021, Geodis saw a 21.4% growth in revenue to $5 billion.
Both Geodis and UPS are expanding their e-commerce logistics service. In 2021, Geodis recorded a 23% rise in e-commerce revenue. The company also posted a 31% increase in freight forwarding services. With SNCF’s backing, Geodis has enough resources to challenge UPS in the European market. [18]
13. General Logistics Systems (GLS)
Year founded: 1999
Headquarter: Oude Meer, Netherlands
GLS is a joint courier service of Royal Mail and German Parcel GmbH. The company has around 19,000 employees and delivers over 634 million parcels annually. With $3.6 billion in revenue, GLS is a force to reckon with in the courier service sector. [19]
GLS is one of the leading couriers in 41 European countries. But it also operates in the US and Canada, going head-to-head with UPS in its home turf. Currently, GLS has more than 200,000 customers across Europe and North America. GLS is a worthy UPS competitor and alternative.
14. Kuehne + Nagel
Year founded: 1890
Headquarter: Schindellegi, Switzerland
Kuehne + Nagel is a logistics and freight forwarding company with around 92,300 employees. The company serves over 400,000 customers from 109 countries. With $26 billion in revenue annually, Kuehne + Nagel is one of the largest UPS competitors.
Both UPS and Kuehne + Nagel offer shipping and freight forwarding via land and air. In 2021, Kuehne + Nagel acquired Apex to bolster its freight forwarding business. Apex increases Kuehne + Nagel’s competitive advantage over UPS. [20]
15. Blue Dart Express
Year founded: 1983
Headquarter: Mumbai, Maharashtra, India
Blue Dart Express is an Indian logistics company owned by DHL. In 2021, the company made $444,587 in revenue. Blue Dart Express contributed to DHL Group’s record-high annual profits in 2021.
UPS and Blue Dart operate in India. Both companies offer airfreight and express parcel delivery. But Blue Dart Aviation delivers to over 35,000 locations across India, more than UPS. Blue Dart Express is the best UPS alternative in India. [21]
References & more information
- Cavale, S. (2022, Feb 2). UPS offers a brighter view after ‘outstanding’ 2021, shares hit a record high. Reuters
- Foelber, D. (2021, Nov 16). 5 Reasons UPS Deserves to Be at an All-Time High. The Motley Fool
- Samaha, L. (2022, Jan 10). Why FedEx Shares Were Flat in 2021. The Motley Fool
- Solomon, M. (2021, Nov 4). Deutsche Post DHL posts sizzling Q3 results raises 2021, 2023 outlooks. Freightwaves
- Carey, N. (2021, Nov 30). Germany’s DB Schenker to Order 1,500 Electric Trucks From Sweden’s Volta. US News
- DB Schenker (2021, Oct 4). DB Schenker Receives Cisco 2021 Excellence in Global Logistics Award. Supply Chain Quarterly
- Heckman, J. (2021, Nov 10). USPS outlines an $8B infrastructure investment in 2022 as a sign of a bright future. Federal News Network
- Brett, D. (2021, Jan 20). FedEx to cut jobs and integrate TNT air network in Europe. Air Cargo News
- Brett, D. (2021, Jul 2). FedEx reduces Liege hub job cuts. Air Cargo News
- Yellow Corp (2022, Feb 2). Yellow Corporation Reports Fourth Quarter and Full Year 2021 Results. Globe Newswire
- 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 Ceva with Ingram Micro buy. The Loadstar
- Ives, C. (2021, Dec 10). H. Robinson Amends Dividend Record Date. Business Wire
- Wolf, C. D. (2022, Feb 2). H. Robinson Reports 55.7% Earnings Surge for Q4. Transport Topics
- TT News (2021, Jul 1). Mainfreight 2021 annual report released. Transport Talk
- Purolator (2021, Oct 14). Purolator to pick up and deliver a record 54 million packages. Newswire
- GeoPost (2021, Jul 30). First Half-Year 2021 Results of Le Groupe La Poste. Actus Newswire
- TI News (2021, Aug 9). SNCF Group revenues up by 13.7% in H1-21. Transport Intelligence News
- Mazareanu, E. (2021, Jun 23). General Logistics Systems (GLS): revenue 2012-2020. Statista
- Pasetti, A. (2021, Oct 20). Kuehne + Nagel – Another dose of M&A to hit the spot. The Loadstar
- SI Reporter (2021, Mar 12). Blue Dart extends rally as parent company posts record profit for CY20. Business Standard
- Featured image by Ty Lee
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Kevin Johnson
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