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Why delivery?

 

Nowdays the delivery business brings in a lot of revenue for those who chose to deliver for their customer. Starting from the big fish like the ones who are doing mail and package delivery, grocery stores to the local dry cleaning store they all choose to diversify their business by adding these service to their portfolio.

My goal is to study all of them with positives and negatives of choosing and paying for a delivery service, analyzing the big players and also the new comers in the market.

I will start with one of the biggest and oldest delivery service in the world the mail and package delivery.

The Biggest players on the market ar:

  1. UPS
  2. USPS
  3. FedEx

USPS was the first mail and package delivery servicein the United States.

Because they had a monopoly their prices were often too high.

In 1852 Wells Fargo was formed to offer mail and package delivery and also banking services.

In 1869 Mail and package delivery moved to the railroad, which was faster and way cheaper. This service became a feature of the railroad service.

By 1913 Wells Fargo left the delivery business and focused on the banking service.

The growing numbers of automobiles and the affordable price of them made the motor freight service to arise as the gasoline and diesel trucks are introduced to the market

UPS started as a private currier service. After the World War II and the improvement of the roads and highways, UPS became a nationwide service. Because of these the railroad mail and package delivery was hurt and ended up losing most of their customers in favor of the highway delivery systems

FedEx was the first one who conceived the air mail in 1918 known as Federal Express at that time. They were the first ones who implemented overnight delivery through most of the country.

As the consumers options for mail and package delivery increases,the delivery time and prices decrease.

The largest mail and package delivery companies today are:

  1. United Parcel Service (UPS) has its headquarters in Sandy Spring, GA, US.UPS owns the largest number of trucks and over 200 aircrafts. They reported over 15 million packages delivered in over 220 countries.
  2. DHL has its headquarters in Bonn, Germany and has over 500.000 people working for them all over the world. They own a large fleet of trucks and aircrafts.
  3. FedEx has its headquarters in Memphis, TN, US and it’s the proud owner of the biggest aircraft fleet in the world.
  4. United State Postal Service (USPS) has its headquarters in Washington, DC. It’s limited delivery service for continental US does not makes them less profitable. In contrary USPS was the second larger employer in the US after Walmart. USPS has the largest number of vehicles in their fleet in the world.
  5. Schenker AG has its headquarters in Berlin. Germany and is the biggest competitor of DHL in Germany with over 91.000 employees around the world.
  6. TNT N.V. has its headquarters in Hoofddorp, Nederlands. They operate their services in 8 European Countries being the largest shipping company in Europe
  7. YRC Worldwide has its headquarters in Overland Park, Kansas, US. They are the biggest heavy weight shipment providers for industrial and commercial shipping worldwide.
  8. Parcelforce Worldwide has its headquarters in Milton Keynes, UK and it’s the largest delivery service in Europe, servicing 24 countries.
  9. Royal Mail has its headquarter in London, England. This is a state owned company and very profitable.
  10. Japan Post Service has its headquarters in Tokio, Japan and it’s also a state-owned giant.

Let’s compare the 3 giants from the US: USPS, UPS and FedEx:

FedEx vs UPS vs USPS comparisonsAll 3 companies deliver mail and packages around the world, but the delivery time and the service price may be different between these 3.

USPS will deliver Priority Express every day including Sunday and Holidays for a surcharge

FedEx delivers Saturday for an extra charge also has an extra service for the same day delivery all year

When You chose to ship mail or a package under 10 pounds the best option to ship is the next-day or the second-day delivery offered at the cheapest price by USPS.

For packages over 10 pounds I found that the cheapest service would be the three-day delivery or ground delivery from FedEx.

UPS looks like being the most expensive in both cases.

Overal USPS has the best price for a small business or an individual wanting to ship a mail or package, has pick up option and a wide array of packaging, which most of them ar free.

All of the 3 companies offer insurance ( for most of the shipping services) and tracking on the shipment at an affordable price, but USPS tracking system includes less details then the ones offered by UPS or Fed Ex.

Fedex vs. UPS vs. USPS compared

The internet is full of complains about late delivery or missing package. If you have the option to add insurance to your shipment I usually add it. If your package is missing and you have the insurance you will be reimbursed with the value you have declared but if you do not have insurance then you could be out of luck cause nobody is going to pay for your missing package.  Of course customers are not happy when they mail is late or not arriving at all but reading the online complaints it looks like that happens way often than it should.

Also the value added for the next day delivery service, Saturday, Sunday or Holiday delivery service are overpriced and for the cost- conscious customers like me it just doesn’t worth it.

While I recommend shipping with UPS as being the cheapest one, when you need to ship heavier packages I would deffinetly use UPS or FedEx.

A 4 day shipping of a 10 lb package is cheaper with UPS and FedEx compared to the same service at USPS that can take to a week to deliver. The same 10 lb package shipped by FedEx is cheaper than a 2 days shipping by USPS

Fedex vs. UPS vs. USPS price comparisons

Also the weight limit is different. While FedEx and UPS weight limit for shipping a package is 150 lb, USPS has a weight limit of 70 lb.

This is my opinion about the today’s mail and package delivery systems. I made this material with the help of the following sources:

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