The US package delivery and courier industry is highly competitive, with many companies vying for a share of the market. While it may seem that there are only four big options for parcel delivery in the United States, that couldn’t be further from the truth. We’re seeing more and more start-ups and small businesses offering more personal and localized services. These new companies on the scene are giving the big providers a run for their money!
This can make it challenging to determine which US courier company is the best option for your needs. To help you make an informed decision, below we have a list of delivery companies in the US, including those with the highest annual revenues in the industry. But first, let’s take a closer look at the industry.
The shipping industry plays a vital role in the global economy, facilitating the delivery of goods and services around the world. There are a variety of delivery companies that specialize in different types of shipments, from small parcels to large cargo containers. As the industry and available technology continue to evolve, delivery companies must continually work to improve their service offerings and capabilities.
While the entire shipping industry is essential to running a business, small parcel package delivery companies are critical to customer satisfaction. Many e-commerce and other types of businesses rely on last-mile delivery companies to get their products to their customers.
This step is typically a major key to whether or not a customer is fully satisfied. As a result, businesses that rely on shipping services need to partner with experienced and reputable courier companies that can provide reliable, on-time deliveries as well as cost-effective services. Unfortunately, the costs of package delivery companies are substantial, and with customers demanding free shipping, it’s businesses that have to foot the bill.
There is no shortage of reputable last-mile delivery companies in the United States. Still, there are some things that business owners should consider when working with any organization on our US courier company list.
Package delivery companies tend to have complex and confusing contracts that are very hard for the average person to understand. The documents contain confusing pricing and fine print that can leave your business without recourse. Because of this, you should always work with a professional third-party company like P3 Cost Analysts to help you negotiate these contracts.
On top of that, even when you have a solid understanding of your contracts, it’s up to you to enforce the terms. If these companies fail to deliver on time, it’s your company’s reputation that suffers. When this happens, last-mile delivery companies like FedEx or UPS owe you a refund on that delivery.
In order to guarantee you’re getting all the refunds you’re owed, a company like P3 can continuously audit your shipping invoices to ensure you’re not being overcharged. We’ll scan for late deliveries and other billing errors that may pop up, saving your business up to 20 percent on shipping fees.
UPS is a delivery company that handles shipping and logistics solutions for both businesses and individuals. Originally founded in 1907, UPS has since grown to become the largest courier company in the US and one of the biggest in the world, with a presence in over 200 countries.
UPS has same-day delivery and competitive rates for large packages, partly thanks to the fact that the company has its own airline for air cargo. In addition to shipping, UPS also offers logistics solutions, such as warehousing and distribution, which can help businesses streamline their supply chain.
While DHL is now based out of Germany, it was actually founded in San Francisco and is still one of the heavy hitters in the US parcel delivery industry. While the DHL Group contains Deutsche Post, Europe’s leading postal and parcel provider, it also includes DHL Express and DHL eCommerce, which focus on parcel and express shipping solutions within the US and internationally.
Because of its heavy presence in the rest of the world, DHL is one of the best options for shipping internationally. They also offer extensive resources to help business owners navigate the complicated shipping process to other countries, like understanding import and export taxes.
FedEx is one of the most popular delivery service companies for businesses, and for good reason. They offer home deliveries seven days a week, allowing companies to get their products into the hands of their customers even faster. Many businesses choose to ship with FedEx specifically because they can trust that their packages will be delivered safely and on time.
It’s one of the largest courier companies on the planet and offers international shipping as well. Other services that make FedEx attractive are its top-notch package tracking, discounts and perks, and even small business grants.
As the only last-mile delivery company that reaches every single address in the country, it’s not surprising that the United States Postal Service remains one of the biggest and best courier companies. In fact, it’s one of the largest employers in the country as well.
USPS remains popular with businesses because of the volume-based discounts and loyalty credits. The organization also offers free APIs for eCommerce businesses to track packages, check rates, and schedule pickups and deliveries.
LaserShip and OnTrac are combining their regional networks to create a full, transcontinental last-mile delivery company. Their goal is to create a functional and competitive alternative to the large national carriers that have been dominating the industry over the past decades. With sorting centers and quick deliveries on the East and West Coasts, they’re looking to expand into Texas and beyond in the coming years, putting pressure on the other package delivery companies.
Another regional carrier company that carved out a decent chunk of the market is Lone Star Overnight, or LSO. Originally started in Texas, hence the name, it now serves other states across the country like Louisiana, Arkansas, Alabama, Tennessee, Missouri, Illinois, Kansas, Oklahoma, and New Mexico.
LSO continues to create strategic alliances with similar companies across the country to provide nationwide service with a focus on flexibility and responsiveness. With continued expansion, LSO may become another big contender.
This regional US courier company may have started small, but it’s been steadily growing ever since. It now serves a solid portion of the Upper Midwest. Since its focus is on a relatively small area of the country, where it delivers is the delivery speed. They also offer lower pricing than competitors within their service areas.
Spee-Dee also offers their clients free software that helps the entire shipping process run smoothly, with tools that print labels, track shipping, and store data.
As part of the much larger, international GLS Group, GLS US takes care of fast parcel shipping and freight delivery throughout the West. With their umbrella company raking in billions across the globe and recent expansions into Colorado, it’s clear that GLS US is here to stay.
This delivery company focuses on offering its customers a high-quality shipping experience, complete with dedicated account managers who help their clients find the best solutions for their shipping needs. They also have a green initiative in place to help ensure the sustainability of the shipping industry.
Recently listed on the 2022 Deloitte Technology Fast 500, a collection of the fastest-growing technology companies in North America, this last-mile delivery company has only been around since 2015. Despite its young age, it’s already made a big splash in the parcel delivery industry.
Founded by a team of Stanford engineers from the StartX Accelerator Program, this courier company is mixing things up by using new technology to optimize route planning, enhance communication, and create mobile applications with exceptional customer experiences.
For businesses that are only worried about shipping small parcels within the United States, Sendle offers a unique business model that brings significant savings. This delivery company is based out of Australia but has made its way to the US to shake up the shipping industry. It uses connections with big business delivery networks to bring affordable shipping to small businesses with no subscription or hidden fees.
Plus, they offer 100 percent carbon-neutral shipping. They just officially announced they are Climate Neutral Certified, a certification given out by the non-profit of the same name that helps organizations get their carbon footprint down to zero.
A few major shipping companies have had the lion’s share of the market for a long time, but regional companies and tech start-ups are finally disrupting the industry.
Regardless of which company you trust for your courier needs, constant contract negotiation and invoice auditing are vital to keeping shipping costs low. Due to the confusing contract terms and endless lines of invoicing, it only makes sense to let a shipping expert like the professionals at P3 Cost Analysts tackle this lengthy process for you. Furthermore, our team of experts utilizes our database of vendor benchmarks on our clients’ behalf. We know exactly what your peers are paying in the industry, and how to leverage that in your favor.
Whether you’re shipping a high volume of small parcels or a lower volume of huge parcels, our experts can find you the best rates available for your specific needs. We can guide you when choosing the best provider and help you negotiate the highest savings possible.
Once we lock in on a contract, we will continue to monitor your invoices for errors or overcharges. We will fight to get your refunds processed quickly so that you don’t miss out on the money that’s rightfully owed to you.
Despite what many business owners think, there are a lot of options when it comes to delivery companies. This US courier company list is just a start! Many of these providers offer similar services, but the regional or newer companies will often have lower prices. The most important thing to consider when shopping around for a courier company is your specific needs.
If this process seems overwhelming to you, or you want expert advice on this complicated business process, reach out to a shipping expert at P3 Cost Analysts. We’ll schedule you a free expense audit today so you can start saving money on shipping as soon as possible!