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.
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Disclosure. None. 12 Biggest Delivery Companies In The World is originally published on Insider Monkey.
FAQs
What is the biggest delivery company in the UK? ›
Royal Mail
It is by far the most popular parcel delivery provider for customers in the UK and is provided as a shipping option in 37 of the UK's top 100 online retailers.
FedEx is one of the biggest courier companies in the world, offering supply chain management and parcel delivery services. It is headquartered in Tennessee, USA, and offers air-drop and time-sensitive deliveries to over 220 countries worldwide.
Is DPD or Hermes more reliable? ›Citizens advice found Hermes and Yodel performed the worst, scoring 1.5 and 1.75 stars respectively. DPD scored lowest when customers were asked if they'd had a problem with their last delivery, with 41% saying they had problems.
Which company is fast delivery? ›1. FedEx. FedEx offers door-to-door delivery service for time-sensitive packages through FedEx SameDay. Users can apply for accounts to use exclusively for same-day services 24/7/365 in all 50 US states.
What was the first delivery company? ›The first package delivery company in the U.S. was established in 1852 by Wells Fargo. By today's standards, it wasn't very reliable or timely. The courier industry was transformed by The Pony Express.
What is the biggest delivery company in the US? ›How many businesses are there in the Couriers & Local Delivery Services industry in the US in 2022? There are 415,856 Couriers & Local Delivery Services businesses in the US as of 2022, an increase of 9% from 2021.
What are the three biggest shipping companies? ›- #1 A. P. Møller - Mærsk A/S (AMKBY)
- #2 Nippon Yusen Kabushiki Kaisha (NPNYY)
- #3 COSCO SHIPPING Holdings Co. Ltd. ...
- #4 Mitsui O.S.K. Lines Ltd. ...
- #5 Hapag-Lloyd AG (HPGLY)
- #6 Kawasaki Kisen Kaisha Ltd. (KAIKY)
- #7 Orient Overseas International Ltd. (OROVF)
- #8 Kirby Corp.
Which delivery service pays most? Caviar pays the most, at an average income of $25 per hour, but it's not available nationwide. DoorDash and Shipt Shopper lead for companies available in more cities with drivers being able to earn between $20 to $23 an hour.
What is a successful delivery? ›Successful Delivery means the successful initial Transmission via the Licensed Service to a Customer's Approved Device of an Included Program in its entirety and the license key issued by Licensee to such Customer for authorization to view such Included Program. Sample 1Sample 2Sample 3. Based on 6 documents.
What is the most delivered item? ›
...
What Is The Most Often Delivered Food?
| Market Size | |
|---|---|
| string | |
| Pizza | 31.7 |
| Asian | 15.4 |
| Sandwiches | 13 |
UPS is one of the most reliable shipping carriers available. At any time, you can track your package to find out exactly where it is.
Which UK delivery company is best? ›- UPS. UPS is also a well-known and reputable company, so you can expect to receive competitive pay and benefits as a UPS delivery driver. ...
- Royal Mail. Another excellent choice is working for the Royal Mail. ...
- DPD. ...
- Evri (Previously Known as Hermes) ...
- Service Club.
Some of the best ecommerce courier service providers in the US are FedEx, USPS, UPS, Aramex, ShipBob, and DHL. These courier companies provide various fast delivery and shipping services that ecommerce retailers can choose from like same-day delivery, next-day delivery, on-demand delivery, and more.
What is same day delivery? ›With same-day delivery, orders are delivered within a few hours after purchasing them, or in a chosen time window on the same day. “ Same-day delivery is a game changer because it combines the immediate product availability of retail with the convenience of ordering from home.” (SVP of a logistics company)
Which company is best for food delivery? ›- DoorDash. Best for consistency. See at DoorDash.
- Uber Eats. Best for fast delivery. See at Uber Eats.
- Postmates. Best for delivery deals. See at Postmates.
- Grubhub/Seamless. Best for easy payment. See at Grubhub.
- Delivery.com. Best for more than just food.
Delivery Services are billable services that are directly associated with a product in a sales order or a return order, for example, the delivery of a high-definition television. Stand-alone delivery service lines can also be created, and if required, associated with a product at a later time.
What is a delivery app? ›Delivery apps can be quick and convenient ways to get food delivered straight to your door. There are a variety of options, with many apps offering delivery and pickup from restaurants, convenience stores, supermarkets, and even liquor stores.
How did delivery work? ›How does DiDi Delivery work? You can make a Delivery request in your DiDi app. It works just like your usual DiDi ride. Enter your parcel pickup and drop-off address for an instant estimate of the delivery fare, tap confirm, get your parcel picked up for delivery and pay in the app once it's been delivered.
Who started delivery? ›The first recorded food delivery is believed to have taken place in Naples, Italy in 1889. King Umberto I and Queen Margherita of Savoy were in Naples when they wanted to try the food of the people: the delicious pizzas of the famous pizza maker Rafaele Esposito.
What is the oldest delivery company in the world? ›
It started in 1474 – as the oldest transport company in the world Gebrüder Weiss has a lot to tell. On 1 October about 250 visitors were able to discover this for themselves at the Gebrüder Weiss Head Office in Lauterach.
How big is the delivery industry? ›The market size, measured by revenue, of the Couriers & Local Delivery Services industry is $151.6bn in 2022. What is the growth rate of the Couriers & Local Delivery Services industry in the US in 2022? The market size of the Couriers & Local Delivery Services industry is expected to increase 4.6% in 2022.
Why is 2022 delivery so long? ›Supply chain issues
39% of brands say shipping and manufacturing delays and shipping costs will continue to be a top supply-chain-related challenge over the next 12 months. A global pandemic, war conflict, and port delays have caused worldwide supply chain problems.
How long do 3 deliveries take? Three Phone contracts are shipped by DPD with next working day delivery if you order before 8pm. Orders to the North of Scotland or Northern Ireland will take 2 working days. 3 SIM orders are sent by Royal Mail and arrive within 1-3 working days.
What kind of delivery companies are there? ›- Local Courier Services. Local courier services provide delivery services within a city. ...
- Global Courier Services. ...
- Same Day Courier. ...
- Overnight Shipping. ...
- Parcel Services. ...
- On-Demand Delivery.
- UPS.
- FedEx.
- USPS.
- DHL.
- Dropoff.
- Onfleet.
- Postmates.
- Darkstore.
A shipping agency or shipping agent is the designated person or agency held responsible for handling shipments and cargo, and the general interests of its customers, at ports and harbors worldwide, on behalf of ship owners, managers, and charterers.
Who is the biggest logistic company? ›| Rank This Year | Company | Net Revenue (Millions) |
|---|---|---|
| Rank This Year 1 | Company C.H. Robinson Worldwide | 2,241 |
| Year 2 | Company XPO Logistics | 6,470 est |
| Year 3 | Company UPS Supply Chain Solutions | 5,565 est |
| Year 4 | Company Expeditors International of Washington | 2,927 |
Courier Delivery Service. You can start this courier delivery business locally with moderate capital investment. If you have a small space and a team of delivery boys, this business is easy to start and makes good money.
How much do delivery riders earn? ›Average ₱15,216 per month.
What is the benefit of delivery? ›
1. It makes the ordering process faster and easier. Before, people had to make calls to place orders and drive to the restaurants for a take-out. All of which can be quite time-consuming to do.
Why is delivery so important? ›It encourages repeat customers
One of the main benefits of ensuring your delivery service is the best that it can be,is that it will encourage repeat customers. Surveys have shown that if a business provides a poor delivery service, customers won't return. It really is that important.
Delivery planning is the practice of planning out routes and logistics to deliver products. Companies that deliver products such as pizzas, flowers, and water all use delivery planning to get their products into the hands of customers.
What is the most popular online delivery service? ›- Grubhub and Seamless. You'll notice when you read through this list, GrubHub is clearly one of the leaders in the food delivery space. ...
- DoorDash. ...
- Uber Eats. ...
- Postmates. ...
- Caviar. ...
- EatStreet. ...
- Delivery.com.
Grubhub has been used by 37.8% of all multi-restaurant delivery website/app users, followed by UberEATS at 36.0%, and DoorDash at 19.9%.
Whats the most popular food in the world? ›Pizza is the topmost liked food in the world. Today you can find pizza in almost every corner of the world. This traditional Italian dish is made of flattened round dough topped with cheese, and tomatoes, and additionally garnished with basil, olives, and oregano.
What is the fastest shipping method? ›What is the fastest overnight shipping option? 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.
Which courier is best for international? ›- 3.1)FedEx International Courier Services Company.
- 3.2)Aramex International Courier Company eCommerce.
- 3.3)Blue Dart International Courier Services Company.
- 3.4)Delhivery International Courier-Services Company.
- 1 DTDC Courier Service: One of the Top 10 Courier Company in India.
- 2 Blue Dart Courier Service.
- 3 India Post Courier Service.
- 4 FedEx Courier Services.
- 5 DHL Courier Service.
- 6 TrackOn Courier Service.
- 7 Gati Courier Service.
USPS Priority Mail offers the most inexpensive pricing for parcels weighing 10 lbs and below for 2-3-day shipping. However, when delivering packs weighing over 10 pounds in the same delivery channel, UPS and FedEx services offer more attractive rates.
› ... › Best and worst shops ›
Best And Worst Delivery Companies - Which?
Parcel delivery companies ranked from worst to best | Express.co.uk
MoneySavingExpert shares list of best and worst parcel delivery ...
Deutche Post DHL is actually the world's largest logistics company. It is active in over 220 countries worldwide with courier, parcel and express mail services.
Who is bigger UPS or Amazon? ›Today, Amazon's revenue is nearly five times that of UPS and its stock market capitalization nearly 10 times bigger. Amazon's retail strategy has succeeded in part by promoting two-day and next-day delivery, as well as free shipping.
Who's bigger UPS or Amazon? ›...
The competitive threat of “free” shipping.
| Amazon | |
|---|---|
| Amazon | Employees: 1.6 million |
| UPS | Employees: 534,000 |
| Amazon | Revenue (net sales) last year: $469.82 billion |
| UPS | Revenue last year: $97.29 billion |
Today, Deutsche Post DHL is known to be the world's largest logistics company. Its international game is by far the strongest among the three, and it is the only carrier that delivers to sanctioned nations like North Korea.
Is FedEx or DHL better? ›FedEx courier services are cheaper for domestic shipments, while DHL is cheaper for international shipments. FedEx is typically faster for domestic transportation in the US, while DHL Express service is usually the fastest international shipping option.
Who is the best courier company? ›- DHL Shipping Service. ...
- DTDC Courier Service. ...
- Gati. ...
- XpressBees. ...
- FedEx. ...
- Ecom Express. ...
- Safexpress Shipping Service. ...
- The Professional Couriers. Professional Couriers is an established courier service provider in India with over a decade of expertise in supply chain specialists.
Both DHL and UPS offer excellent customer service, but UPS is typically considered to have better customer service than DHL. UPS delivers more features and services that are designed to make the shipping process easier for customers, such as tracking and insurance.
Who is bigger FedEx or UPS? ›...
Comparison chart.
| FedEx | UPS | |
|---|---|---|
| Net income | $2.03 billion (2012) | $3.804 billion (2011) |
What's happening: Amazon has 21% of the U.S. shipping market — right behind UPS (24%) and ahead of FedEx (16%). The USPS remains dominant with 38%, and all other shippers account for just 1% of the market, according to Pitney Bowes, which tracks the global shipping and e-commerce industry.
Why is 2022 delivery so long? ›
Supply chain issues
39% of brands say shipping and manufacturing delays and shipping costs will continue to be a top supply-chain-related challenge over the next 12 months. A global pandemic, war conflict, and port delays have caused worldwide supply chain problems.
Amazon To Surpass UPS, FedEx As Largest In 2022.
Who is better FedEx or UPS? ›If we compare FedEx and UPS Ground services, UPS is typically faster than FedEx. One of the possible reasons for this is that UPS has a larger fleet of trucks in the USA and, therefore, is able to process and reach several locations faster than FedEx.
Who is richer Amazon or UPS? ›AMZN, -0.83% was the largest, with the ecommerce giant's share of total revenue rising to 13.3% in 2020 from 11.6% in 2019. With UPS reported total 2020 revenue of $84.63 billion, that indicates Amazon accounted for $11.26 billion in 2020 revenue, up from $8.59 billion a year ago.
Why DHL is the best? ›10.1) Pros of DHL
DHL is also known for its speed. The company offers express shipping options that guarantee delivery within 1-3 days, depending on the destination. Customer service is another area where DHL shines. The company has a 97% satisfaction rating from customers, which is higher than many competitors.
For domestic transportation in the USA, FedEx Overnight service is typically faster, with the option of guaranteed delivery by 9:30 on the next day. However, for international shipping, DHL Express service is usually the fastest alternative, performing worldwide deliveries in up to 3 working days.
Which is cheaper FedEx or UPS? ›If we compare UPS and FedEx domestic services, UPS is cheaper than FedEx. What is this? UPS is recognized as the best option for domestic package shipments as it offers cheaper shipping rates, while FedEx ranks as the most expensive carrier.