Since its founding in 1973, FedEx has made a name for itself by providing rapid shipping options and real-time tracking. It was also the first American company to reach $1 billion in revenues without mergers or acquisitions in its first decade.
However, even though FedEx has been wildly successful, that doesn’t mean it doesn’t have any competitors. In fact, there are plenty of companies vying for a spot next to FedEx in the United States and abroad. Check out this article to find out who they are!
FedEx’s Competitors in 2023
Worldwide, United Parcel Service (UPS) is FedEx’s main competitor in 2023. Indeed, both provide international logistics and package delivery to more than 220 countries. In addition, both posted over $90 billion in revenue in 2021. Other competitors include American companies like DHL, USPS, and XPO Logistics, German companies like Kuehne + Nagel, and French companies like CEVA Logistics.
This article is packed with information about 11 of FedEx’s top competitors, so keep reading to find out who they are!
1. United Parcel Service (UPS)
United Parcel Service, or UPS for short, is an international logistics and package delivery company that operates in more than 220 countries.
It operates UPS Freight, UPS Airlines, and UPS Stores, and makes more than 5.5 billion deliveries per year.
In 2021, the company’s revenues added up to $97.3 billion and it has no plans on stopping there.
Indeed, UPS is focusing on improving its small business services and becoming a main player in the eCommerce industry.
At this time, UPS is a strong competitor for FedEx because it’s better suited to handle crises.
Founded in San Francisco in 1969, DHL is the world’s largest logistics and courier service company, with over 1.5 billion deliveries annually.
Like UPS, DHL provides parcel delivery, international courier, and express mail services in 220 countries.
In the 2021 fiscal year, the company posted a record €81.74 billion in revenue ($84.24 billion).
DHL’s main competitive advantage over FedEx is its comprehensive service portfolio.
While FedEx only provides the following services:
- IT-based logistics
DHL offers the following:
- Post and Packet
- Global Forwarding
- Supply Chain solutions
What’s more, although FedEx has a strong presence in North America, DHL is synonymous with intercontinental logistics and is FedEx’s top competitor globally.
3. Kuehne + Nagel
Germany’s Kuehne + Nagel is a leading logistics and freight forwarding company that operates in 109 countries.
Indeed, the company accounts for almost 15% of the global freight business.
In addition to freight forwarding via land, sea, and air, Kuehne + Nagel’s also provides contract logistics and IT-based logistics solutions.
At the end of 2021, the company generated CHF 36 billion ($38.3 billion) in revenue.
Overall, Kuehne + Nagel is one of the best alternatives to FedEx when it comes to air freight and sea freight forwarding.
4. DB Schenker
Another German company, DB Schenker, is also one of FedEx’s biggest competitors. DB Schenker is the logistics side of German rail operator Deutsche Bahn AG.
DB Schenker offers air, land, and sea freight, and contract logistics in 140 countries. In 2021, it posted €23 billion in revenue.
As one of the leading integrated logistics services in the Americas and Europe, DB Schenker is a formidable competitor for FedEx.
5. XPO Logistics
XPO Logistics is an American multinational company providing logistics, trucking, and brokerage services in more than 32 countries.
In 2021, the company made over $12.8 billion in revenue.
Thanks to XPO Connect, the company’s tech-driven shipper and transportation matching service, XPO Logistics, is a worthy FedEx competitor.
Purolator is owned primarily by Canada post and does most of its business in Canada. That said, its subsidiary, Purolator International, handles delivery in the United States and abroad.
In 2021, the company posted $51 million, a surprising windfall considering Canada Post’s losses.
Although Purolator is a much smaller company than FedEx, it’s a strong competitor in the Canadian market.
7. Yellow Corp
Another North American company, Yellow Corp, gives FedEx a run for its money. Indeed, the company posted $5.12 billion in revenue in 2021.
In the future, the company hopes to compete with FedEx in the less-than truckload (LTL) industry.
This goal is made easier by the fact that the U.S. government controls a 30% share of the company and plans to provide a $700 million loan for property divestitures and new equipment.
8. CEVA Logistics
Based in Marseille, France, CEVA Logistics is a global logistics and supply chain company that operates in 160 countries.
It offers freight management and contract logistics services, and is the world’s fourth-largest logistics provider.
In 2021, the company posted $12 billion in revenue.
9. SNCF Group
SNCF is France’s state-owned railway company. It offers freight, transportation, logistics services, and innovative supply chain solutions.
2021 was a big year for the company, with its freight forwarding and contract logistics arm, Geodis, experiencing a 21.4% growth in revenue.
SNCF also recorded a 23% increase in eCommerce revenue, and a 31% increase in freight forwarding services the same year.
Thanks to this growth, SNCF generated €34.8 billion ($35.9 billion) in revenue in 2021.
As the company continues to grow, it will become even more competitive with FedEx.
10. United States Postal Service (USPS)
USPS is the United States’ self-governing postal service. It operates as a U.S. agency under the federal government.
Not only does it have a monopoly on letter delivery in the United States, but also competes with FedEx in the package delivery sector.
In the 2021 fiscal year, USPS made $77.06 billion in revenue, with a net loss of $4.93 billion.
This is an impressive feat, considering the lack of funding and support the agency receives from the government.
11. CH Robinson
CH Robinson is a Fortune 500 company that provides transportation, third-party logistics, warehousing, and brokerage services.
Other services include freight consolidation, supply chain analysis, and information reporting.
While goods transportation accounts for most of the company’s $23.1 billion in revenue, sourcing and marketing fresh produce also make up a good portion of the profits.
Overall, thanks to its strong brand value and affordability, CH Robinson is one of FedEx’s top competitors.
While FedEx isn’t struggling by any means, there are still plenty of companies out there looking to compete with this global leader in transportation, logistics, and package delivery.
With that in mind, you might want to invest some time looking into the companies mentioned in this article the next time you plan on shipping.