What is the market share of UPS?
UPS currently holds approximately 20-23% of the U.S. parcel delivery market by volume, making it the second-largest traditional carrier behind USPS but ahead of FedEx. However, the company’s market position has shifted significantly as Amazon Logistics has captured roughly 28% of parcel volume and private delivery networks from major retailers continue expanding. UPS’s “Better Not Bigger” strategy prioritizes profitable shipments over raw volume growth, resulting in higher revenue per package even as overall market share faces downward pressure.
Numbers at a glance
- 20-23% U.S. parcel market share by volume (2024)
- 4.6 billion packages delivered by UPS in 2023
- $68.9 billion parcel delivery revenue in 2023
- 35% revenue-based market share (2023)
- 10.3% volume decline from 2022 to 2023
- 6.4% revenue decline year-over-year (2023)
UPS’s current market position
The parcel delivery landscape has fundamentally shifted over the past five years, with UPS adapting its strategy to maintain profitability amid intensifying competition.
Where UPS stands in 2025
UPS remains the largest traditional parcel carrier by revenue, generating approximately $68.9 billion in parcel revenue during 2023. The company’s market share varies significantly depending on measurement methodology—volume versus revenue, domestic versus international, and business-to-business versus consumer segments.
By volume, UPS handled 4.6 billion packages in 2023, representing about 20-23% of the U.S. parcel market. This positions UPS as the second-largest carrier overall, trailing USPS (31% market share, 6.9 billion packages in 2024) but ahead of FedEx (15% market share, 3.4 billion packages).
Year-over-year trendlines
UPS has experienced notable volume declines in recent years, with parcel volume dropping 10.3% from 2022 to 2023. Revenue also declined 6.4% year-over-year in 2023, reflecting both volume pressures and competitive pricing dynamics in the market.
Despite these challenges, UPS maintained its focus on yield management, prioritizing profitable shipments over pure volume growth as part of its strategic repositioning.
The big three: UPS vs. FedEx vs. USPS
U.S. Parcel Market Share by Volume (2024)
Percentage of total package deliveries
Note: UPS highlighted in red as the focus carrier. Amazon Logistics has grown rapidly to become the second-largest carrier by volume.
The traditional “big three” carriers face unprecedented competition from Amazon Logistics and smaller regional carriers:
- USPS: 31% market share (6.9 billion packages in 2024)
- Amazon Logistics: 28% market share (6.3 billion packages in 2024)
- UPS: 20-23% market share (4.6 billion packages in 2023)
- FedEx: ~15% market share (3.4 billion packages)
- Other carriers: Growing rapidly with 22.6% volume growth in 2024
This ranking represents a significant shift from just five years ago, when Amazon Logistics was primarily focused on its own deliveries rather than competing directly for market share.
Key forces shaping UPS market share
Multiple structural changes in the parcel delivery industry continue to influence UPS’s competitive position and strategic responses.
E-commerce giants building in-house networks
Amazon Logistics has emerged as the most significant disruptor, growing from 1.7 billion packages in 2019 to 6.3 billion in 2024. The company is projected to overtake USPS by 2028, with 8.4 billion parcels versus USPS’s projected 8.3 billion.
Walmart has similarly expanded its delivery capabilities, with CEO Doug McMillon noting that e-commerce represents 17% of the retailer’s total net sales and is expected to contribute 50% of topline growth over the next five years. The company’s same-day delivery coverage has grown by 22% during the past two years, now reaching 93% of U.S. residences.
Regional and last-mile carrier expansion
The “others” category of smaller carriers experienced 22.6% volume growth in 2024, reaching 0.8 billion shipments. These carriers have collectively grown from 600 million packages in 2019 to 2.3 billion in 2024, representing a nearly four-fold increase.
Companies like OnTrac, Better Trucks, Jitsu, Veho, SpeedX, and UniUni are capturing increasing market share by offering specialized services and competitive pricing in specific geographic areas or customer segments.
Labor negotiations and cost pressures
UPS’s unionized workforce provides service reliability but creates cost structures that require careful management through economic cycles. The company must balance competitive pricing with operational costs while maintaining service quality standards.
Recent labor negotiations have resulted in wage increases that UPS must offset through operational efficiency improvements and strategic pricing decisions, affecting the company’s ability to compete purely on price.
Service differentiation (speed, returns, cold-chain)
UPS has invested heavily in specialized services to differentiate itself from competitors and justify premium pricing. The company’s healthcare logistics capabilities, international express services, and business-to-business focus represent higher-margin opportunities that help offset volume pressures in standard ground delivery.
Competitive benchmarks
Understanding UPS’s market position requires examining multiple metrics that reveal different aspects of competitive performance.
Carrier Performance Comparison (2023-2024)
Key metrics across major U.S. parcel carriers
Volume share vs. revenue share
UPS’s revenue share (35% in 2023) significantly exceeds its volume share (20-23%), indicating the company’s success in capturing higher-value shipments. This 2% decrease from 2022 reflects competitive pressures but demonstrates UPS’s strategic focus on profitable deliveries.
UPS: Volume Share vs Revenue Share
Demonstrating “Better Not Bigger” strategy success
The revenue-to-volume ratio demonstrates UPS’s “Better Not Bigger” strategy in action, prioritizing profitable deliveries over market share growth measured purely by package count.
Domestic vs. international segments
UPS maintains stronger market positions in international express delivery and cross-border e-commerce, where its established network and customs expertise provide competitive advantages. The company’s international capabilities help differentiate it from domestic-focused competitors like Amazon Logistics.
B2B vs. B2C exposure
UPS’s business-to-business customer base provides more stable revenue streams and higher average shipment values compared to consumer-focused delivery services. This customer mix helps insulate UPS from some competitive pressures in the rapidly growing but lower-margin B2C e-commerce segment.
Strategic responses from UPS
UPS has implemented several strategic initiatives to maintain its competitive position while adapting to changing market dynamics.
“Better not bigger” yield strategy
The company’s signature strategic approach prioritizes profitability over volume growth, using disciplined pricing and customer selection to improve margins. This strategy involves selectively managing shipment volumes to focus on higher-margin deliveries.
UPS announced in January 2025 that it will slash volumes it handles for Amazon by 50% over the next 18 months as it focuses on higher-yield freight, demonstrating its commitment to this approach.
Healthcare logistics and high-margin niches
UPS has expanded its healthcare logistics capabilities, including temperature-controlled transportation, clinical trial support, and pharmaceutical distribution services. These specialized services command premium pricing and provide growth opportunities in markets where operational expertise creates competitive barriers.
Network of the future automation plan
UPS continues investing in automation technologies and network optimization to improve operational efficiency and service reliability. The company’s focus on operational improvements aims to reduce costs while maintaining service quality, helping UPS compete more effectively on both price and performance metrics.
What it means for shippers and investors
UPS’s evolving market position creates both challenges and opportunities for different stakeholder groups.
Carrier diversification checklist
Shippers should consider multiple factors when evaluating UPS as part of their carrier mix:
- Service requirements: UPS excels in business deliveries, international express, and specialized services
- Geographic coverage: Strong in suburban and business districts, with comprehensive international networks
- Pricing stability: Premium pricing but predictable rate structures
- Technology integration: Robust tracking, API capabilities, and supply chain visibility tools
Cost-saving scenario planner
| Shipping Profile | UPS Advantages | Alternative Considerations |
|---|---|---|
| B2B, <5 lbs | Reliable service, business locations | Regional carriers for cost savings |
| International express | Established network, customs expertise | DHL for specific corridors |
| Healthcare/pharma | Specialized capabilities, compliance | Limited alternatives for complex requirements |
| High-volume B2C | Negotiated rates, service consistency | Amazon Logistics (if available), USPS partnerships |
KPIs to watch over next 12 months
Key performance indicators that will signal UPS’s competitive trajectory include:
- Revenue per package trends: Indicating pricing power and customer mix success
- Volume growth in premium services: Healthcare, international express, and B2B segments
- Market share in key verticals: Healthcare, automotive, and industrial segments
- Competitive responses: How UPS adapts to continued Amazon and regional carrier growth
Frequently asked questions
How is parcel volume share different from revenue share?
Volume share measures the percentage of total packages handled, while revenue share reflects the percentage of total industry revenue captured. UPS’s revenue share (35%) exceeds its volume share (20-23%) because the company focuses on higher-value shipments that command premium pricing.
Does UPS still lead in international express shipments?
UPS remains a leading international express carrier, competing primarily with FedEx and DHL. The company’s established global network and customs expertise provide competitive advantages in cross-border e-commerce and business shipments.
How often does UPS publish market-share data?
UPS reports financial metrics quarterly but doesn’t publish comprehensive market share data. Industry analysts like Pitney Bowes, ShipMatrix, and various research firms provide market share estimates based on volume tracking and revenue analysis.
Is Amazon Logistics available to third-party merchants?
Amazon Logistics primarily serves Amazon’s own deliveries but has begun offering limited services to select third-party merchants. The service isn’t widely available as a general shipping option for businesses outside Amazon’s ecosystem.
What role does the USPS play in last-mile delivery partnerships?
USPS handles final delivery for many UPS SurePost shipments, particularly to residential addresses in rural or low-density areas. This partnership allows UPS to offer competitive pricing for lightweight packages while leveraging USPS’s extensive delivery network.
How do labor agreements influence share swings?
UPS’s unionized workforce provides service reliability but creates cost structures that affect pricing flexibility. Labor negotiations can influence the company’s competitive positioning, particularly during contract renewal periods when operational disruptions or cost increases may occur.
Will regional carriers continue growing market share?
The trend toward regional carrier growth appears likely to continue, with the “others” category experiencing 22.6% volume growth in 2024. These carriers often focus on specific geographic areas or customer segments where they can offer competitive advantages over national carriers.
How can small businesses negotiate better UPS rates?
Small businesses can improve UPS pricing through volume commitments, using UPS-preferred packaging, consolidating shipments, and working with third-party logistics providers who have negotiated enterprise rates. UPS also offers small business programs with simplified pricing structures.
Why do some sources show UPS with 50%+ market share?
Some financial sites like CSIMarket may show UPS with 50%+ market share because they’re measuring only a specific segment (like UPS vs. FedEx in express services) rather than the total U.S. parcel market that includes USPS, Amazon Logistics, and regional carriers. The broader market view provides a more complete competitive picture.
Key takeaways
- UPS holds 20-23% of U.S. parcel volume but commands 35% revenue share, reflecting its focus on higher-value shipments
- Amazon Logistics is the biggest disruptor, growing from 1.7 billion to 6.3 billion packages (2019-2024) and projected to overtake USPS by 2028
- “Better Not Bigger” strategy is working — UPS prioritizes profitable deliveries over volume growth, maintaining revenue leadership among traditional carriers
- Regional carriers are gaining ground with 22.6% volume growth in 2024, collectively handling 2.3 billion packages
- B2B and international segments remain UPS strengths where service quality and reliability command premium pricing
- Market fragmentation is accelerating as private delivery networks from retailers capture increasing share of parcel volume growth
Sources & references
- FreightWaves – FedEx, UPS lose parcel market share to big retailers, smaller couriers — ShipMatrix data on 2024 parcel volumes and market share trends
- Parcel and Postal Technology International – US parcel volume growth outpaces revenue — Pitney Bowes 10th annual Parcel Shipping Index findings
- TransImpact – The State of Parcel Shipping 2025 (Part 2) — Industry analysis of UPS and FedEx volume declines and competitive pressures
- Pitney Bowes Parcel Shipping Index — Official 2024 parcel market data and carrier volume statistics
