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Home » Last Mile Delivery » Small Package-Delivery Companies Grow as Businesses Seek Alternatives to UPS, FedEx

Small Package-Delivery Companies Grow as Businesses Seek Alternatives to UPS, FedEx

A DELIVERY VAN STANDS WITH ITS DOORS OPEN, DISGORGING PACKAGESt_Noire-1401168594.jpg

Photo: iStock.com/Bet_Noire

January 24, 2023
SupplyChainBrain

Some small, regional parcel carriers in the U.S. are expanding their operations in an effort to carve away business from the market heavyweights. The Wall Street Journal reports the carriers are looking to capitalize on labor uncertainty at United Parcel Service, higher rates charged by UPS and FedEx and a strategy by retailers to spread out more of their parcel business.

LaserShip/OnTrac is expanding its delivery network into Texas this year. Texas-based Lone Star Overnight is opening a sorting facility in Chicago next year and is working with local delivery companies to extend services. 

Regional and other carriers still have less than 10% of the U.S. market, but the share is growing. They are gaining as retailers move away from a strategy of giving all their packages to one carrier to maximize volume and reap bigger discounts.

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