Most people can't afford to take the time or money to hand deliver a package, especially if the package destination is halfway around the world. Still, people want to get parcels from one place to another, so they utilize the services of companies such as FedEx and the United Parcel Service (UPS). These two companies are in fierce competition with each other and have some major differences.
According to Rachel Rutkoski, author of UPS vs. FedEx: Union vs. Non-Union, FedEx currently does not allow unionization of its workers on the local level due to the fact that it falls under the Railway Labor Act. UPS, on the other hand, does have unionization of workers under the National Labor Relations Act. The ability to unionize means that UPS workers, like other members of unions, may see better pay rates, benefits and vacation time.
Services from FedEx and UPS are similar. However, CNBC senior correspondent Tom Costello reported that FedEx is the clear winner in air shipments, handling 25 percent more air parcels than UPS does. UPS, by comparison, is the winner of the ground shipments. They have a ground service that is 5 times the size of FedEx.
Revenue and Stock
The success or failure of a company is determined in part by how much revenue the company gains, as well as the stock value held. In terms of revenue, UPS and FedEx are not that far apart--as of 2003, according to Costello, UPS had revenues of about $30 billion, while FedEx had revenues of about $22 billion. Stock values were drastically different, however. UPS stock was valued at $82 billion for UPS and only $22 billion for FedEx.
On the whole, according to the chart compiled by Kevin Shult, author of Battle of the Brands: UPS vs. FedEx, rates for FedEx are cheaper, but usually only by a few dollars. In some cases, rates can be identical. Both FedEx and UPS have increased rates in order to compensate for economic changes. The cost of fuel is also responsible for the rate hike for these companies.
FedEx and UPS are both good options for sending parcels if you need to have it delivered right away (next day); they generally can guarantee that a parcel is delivered within 24 hours. This is not something that the United States Postal Service can do, although the USPS can give an estimate on when the parcel will arrive. However, both FedEx and UPS are more expensive than USPS in general. If there is no rush on when your package arrives, then it may be better just to ignore both FedEx and UPS, and use USPS services.