However, Because FedEx has more dissimilar operations—from express to ground to freight—a single network strategy would not work. However, for UPS, the different businesses it has are essentially all about small package delivery, and sharing a single network makes the most sense.
It may be surprising to see that two delivery services companies can be so different in so many aspects of their operations. To many people, they look the same.
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I Accept Show Purposes. Your Money. Your Practice. Popular Courses. Business Essentials Guide to Mergers and Acquisitions. Business Business Essentials. UPS specializes in domestic ground delivery services. FedEx specializes in time-sensitive international air freight. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.
We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Federal Express became a public company in , which raised capital for further expansion. As the s began, companies started to increase their use of overnight delivery services, moving away from the United States Postal Service. This service made Federal Express the company with the largest sales of any U.
In FedEx made its first acquisition, Gelco Express, a Minneapolis-based package courier that served 84 countries. In the company looked to develop an international presence and expand its services to Europe by opening a European hub at the Brussels airport. By , Federal Express was providing service to about 90 countries and had landing rights in five airports outside the United States, at Montreal, Toronto, Brussels, and London, with limited rights in Tokyo.
The s found Federal Express with competition in the U. International operations were costly for Federal Express, with falling profits on increasing sales due to the cost of developing the overseas markets. To increase capacity and decrease costs, the company shed its Boeing aircraft for Airbus A aircraft. FedEx now has a fleet of more than aircraft, including Boeing , F, and Freighters. FedEx replaced all its Boeing aircraft in with Boeing planes, which are 47 percent more fuel-efficient than the aircraft.
This is despite Boeing ending production for the back in FedEx was to be the launch airline for the Airbus A Freighter, but canceled its orders after two years of delays. Updated by Gary Marion. Actively scan device characteristics for identification. FedEx traditionally attributes its success and reputation to its unmatched performance in overnight deliveries.
UPS delivers an average of over 13 million packages each day. FedEx averages approximately 5 million daily deliveries, but surpasses UPS in air deliveries, 3.
The two rivals have grown out of very different beginnings to occupy their current standings in the marketplace. As technological advances enable UPS and FedEx to carry their respective businesses to greater heights, the evolution of the technology has them walking a fine line between fanning the flames of competition and growing side by side.
The fleet services 1. UPS first expanded to Europe in UPS counts global reach, technology systems, customer relationships, brand equity, and e-commerce capabilities among its competitive strengths. The corporation as a whole employs , workers and contractors, and , of those employees serve FedEx Express as it provides delivery services to countries using 53, drop-off locations, aircraft, and 48, road vehicles.
The growth strategies of FedEx include increasing high-tech and highvalue added business goods, globalization, acceleration of the supply chain, and continued expansion of Internet and e-commerce solutions.
The corporation views its brand as a strong business asset and uses it to provide customers with an integrated set of business solutions, including those available from FedEx. Both, like any company that is seeking to grow, look to increase the efficiency of their operations. Improved efficiency generally results from cutting costs of business processes and extending the usefulness and capabilities of resources beyond current expectations.
One of the most important ways that UPS and FedEx have improved their businesses since the late s is through the use of wireless technologies. The companies take on contrasting personalities in their implementations of such technologies. FedEx acts more like a startup business, jumping at the chance to adopt the latest and greatest applications as soon as they prove to be economical and effective for both the company and its customers. UPS, on the other hand, adheres to a more measured schedule of new technology rollouts, generally waiting from 5 to 7 years between major initiatives.
This approach enables UPS to revamp its systems with uniform upgrades that can replace segments of the old systems in phases. Their approaches, however, are not diametrically opposite. UPS is willing to make intermediate technology changes to take advantage of opportunities, whereas Fed Ex tries to makes sure its adoptions have longterm viability and support its critical priorities.
And regardless of approach, FedEx and UPS have determined that wireless technologies have a major impact on their key business processes, especially package pickup and delivery transactions and the physical packaging and sorting of packages. Fifteen years ago, deploying wireless technology generally required contracting with a technology vendor to develop proprietary systems.
Such systems were costly because they had to be developed from the ground up and neither company had the existing infrastructure or bandwidth to support wireless technology at the outset. Both companies use the Bluetooth short-range wireless specification,
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