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.
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.
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.
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.See AlsoBest Essential Oils 2022Siemens PLC Programming | New PLC and HMI Project in TIA Portal v16What Is Customer Service?6 Best Whole House Reverse Osmosis System in 2022 - HouseHoldMag(Video) The world's largest package delivery company
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.
Click to continue reading and see 5 Biggest Delivery Companies In The World.
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Disclosure. None. 12 Biggest Delivery Companies In The World is originally published on Insider Monkey.
What is the biggest delivery company in Europe? ›
DPDgroup is the parcel delivery network of GeoPost. GeoPost posted sales of €14.7 billion in 2021. GeoPost is a holding company owned by La Poste Groupe.What is the most popular courier? ›
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.Which delivery company is best? ›
- 2.2) DTDC. ...
- 2.3) Blue Dart. ...
- 2.5) Gati. ...
- 2.6) DHL. ...
- 2.7) Ekart. ...
- 2.8) Ecom Express. ...
- 2.9) Safe Express. ...
- 2.10) Professional Courier Services.
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.Which delivery company is the fastest? ›
UPS provides one of the fastest shipping options through its UPS Next Day services, which puts your package on the next available flight and often arrives the same day. Customers find that packages arrive much sooner than promised if you're sending a package internationally.Which is the best delivery franchise? ›
- DTDC Courier and Cargo Ltd. Founded in: 1990. ...
- InXpress. Founded in: 2011. ...
- Day Xpress Courier and Cargo Services. Founded in: 2015. ...
- Delhivery. Founded in: 2011. ...
- Blue Dart. Founded in: 1983. ...
- Flipkart. Founded in: 2007. ...
- SpreadWings Courier & Cargo Pvt Ltd. ...
- Pick Me Express.
|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|
- 2.1) FedEx.
- 2.2) DHL.
- 2.3) Aramex.
- 2.4) DB Schenker.
- 2.5) UPS.
- 2.6) DTDC.
- 2.7) Blue Dart.
- 2.8) E com Shipping Solutions Pvt Ltd.
- The Courier Guy.
- Door 2 Door.
- Courier It.
- Dawn Wing.
- City Logistics.
Which delivery app makes the best money? ›
- DoorDash. Earning Potential $18-25/hour. ...
- Instacart. Earning Potential $12-20/hour. ...
- Uber Eats. ...
- Grubhub. ...
- Shipt. ...
- Amazon Flex. ...
- Favor Delivery. ...
Swiggy Instamart. Swiggy Instamart is operated by the popular food delivery app Swiggy. The best thing about this Instant Grocery Delivery App is Swiggy Instamart offers and coupons.How many delivery companies are there? ›
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 is the cheapest shipping method? ›
Use flat-rate shipping where possible—flat-rate shipping will almost always be the best value for money, especially for domestic delivery. Flat-rate shipping means that you can predict prices more accurately. No matter what kind of parcel you have or what dimensions or weight it is, the price will always be the same.What is the most reliable delivery service? ›
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.What is faster than DHL? ›
Both DHL and FedEx offer overnight shipping services. However, when it comes to which company is faster, FedEx takes the lead. The average delivery time for a FedEx package is 1-2 days, while the average delivery time for a DHL package is 2-3 days.What franchise makes the most profit? ›
- McDonald's. Units in operation: 39,360. ...
- Dunkin Donuts. Units in operation: 12,800. ...
- Taco Bell. Units in operation 12,800. ...
- Subway Franchise. Offers Financing: Yes. ...
- Anytime Fitness Franchise. Units in operation: 4,904. ...
- Sonic. Royalty: 2.5% - 5.0% ...
- Planet Fitness. Royalty 7.0% ...
- Orangetheory Fitness.
What is the most profitable franchise to own? According to the Franchise 500 list of 2021, Taco Bell is the most profitable franchise to own. The food chain has been franchising for nearly 6 decades and is still seeking franchises worldwide. As of 2021, they have 7,567 open units.Is delivery a profitable business? ›
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.What are the 5 biggest logistics providers worldwide? ›
|A&A Rank||Third-Party Logistics Provider (3PL)||Gross Logistics Revenue (US$ Millions)*|
|1||Kuehne + Nagel||40,838|
|2||DHL Supply Chain & Global Forwarding||37,707|
Who makes the most money in logistics? ›
- Commodity manager.
- Management analyst.
- Configuration manager.
- Supply chain manager.
- Director of operations.
- Sourcing manager.
- Chief operating officer.
- Vice president of supply chain.
- #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.
The major carriers in the United States used by most small businesses to ship their goods are the United States Postal Service, UPS, FedEx, and DHL. In 2021, the USPS had 7.6 billion in shipping and package volume. UPS delivered about 6.4 billion packages in 2021.Is DHL or FedEx 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.› blog › best-international-shippi... ›
Top 10 Best International Shipping Companies in the World 
Top 10 Best Logistics Companies in the World 
Top 10 logistics companies worldwide
|Net income||$2.03 billion (2012)||$3.804 billion (2011)|
If you measure by revenue in 2018, UPS is the largest company, garnering $71.9 billion, and is closely followed by USPS, with $70.6 billion.Is DHL the biggest delivery company? ›
Today, DHL is the world's leading logistics company. Our 380,000 people in over 220 countries and territories work every day to help you cross borders, reach new markets and grow your business.
Is Amazon the largest delivery service? ›
The competitive threat of “free” shipping.
|Employees: 1.6 million||Employees: 534,000|
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 UPS so much better than FedEx? ›
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. Nonetheless, this data may differ for rural destinations.Who is FedEx biggest competitor? ›
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.Who's bigger UPS or Amazon? ›
In 2020, Amazon surpassed FedEx in terms of number of packages delivered — 4.2 billion compared to FedEx's 3.3 billion, according to Pitney Bowes data — and started to gain on UPS and the United States Postal Service: Amazon ships 21% of packages in the US, UPS ships 24%, and USPS ships 38%, the data showed.Is Amazon or UPS bigger? ›
In 2020, Amazon surpassed FedEx in terms of number of packages delivered - 4.2 billion compared to FedEx's 3.3 billion, according to Pitney Bowes data - and started to gain on UPS and the United States Postal Service: Amazon ships 21% of packages in the US, UPS ships 24%, and USPS ships 38%, the data showed.Who is bigger FedEx or UPS or DHL? ›
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.Who is better than DHL? ›
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.Is DHL or FedEx 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.What is faster than DHL? ›
Both DHL and FedEx offer overnight shipping services. However, when it comes to which company is faster, FedEx takes the lead. The average delivery time for a FedEx package is 1-2 days, while the average delivery time for a DHL package is 2-3 days.
Will Amazon take over FedEx? ›
Dave Clark, CEO of Amazon 's worldwide consumer business, said Monday that the company is poised to become the largest U.S. package delivery service by early 2022, overtaking longstanding shipping rivals UPS and FedEx .Is UPS dropping Amazon? ›
News / UPS cuts Amazon volumes – and heads for 'upstream delivery density' UPS is cutting its work with Amazon – in a way that “makes sense for us” – to focus on delivery density.Does Amazon use UPS or FedEx? ›
Key Takeaways. Amazon directly handles 67% of its deliveries. The company is already the nation's fourth-largest package delivery service. It still shares the load with FedEx, UPS, and USPS.