UPS Competitors: 5 Shipping Companies Like UPS to Consider

Colby Ezell / Small Parcel / January 31, 2023

When it comes to shipping and delivering packages, few companies have the reputation and reach of UPS. But if you’re in the market for a reliable shipping company or delivery service, it’s worth considering some of the top UPS competitors and alternatives. From budget-friendly options to high-end solutions, there are plenty of delivery companies and shipping companies similar to UPS that are worth exploring.

In this blog, we’ll take a look at some of the top UPS competitors and provide a comparison of their unique features. So whether you’re looking for a cost-effective alternative to UPS or simply want to diversify your shipping options, we’ve got you covered.

Last Mile Parcel Delivery

The last mile shipping industry refers to the final leg of the delivery process when packages are transported from a distribution center or fulfillment center to their final destination, which is typically a residential address. This is often considered the most challenging and costly part of the delivery process, as it requires navigating unfamiliar routes and dealing with factors such as traffic and limited access to addresses.

Traditionally, the last mile delivery process has been carried out by established shipping and delivery companies, such as UPS, FedEx, and the United States Postal Service (USPS). These companies have extensive networks of drivers and vehicles, plus well-established processes for handling and delivering packages. However, the increasing demand for last mile delivery services has put pressure on these companies to improve their efficiency and meet the needs of modern consumers.

Despite the challenges, the last mile shipping industry is a vital part of the global logistics network and is expected to continue growing in the coming years. As such, it will be important for companies operating in this space to stay up-to-date on the latest trends and technologies to remain competitive and deliver value to their customers. This may involve investing in new equipment and training for employees, as well as implementing innovative solutions to streamline the delivery process.

About UPS

UPS (United Parcel Service) is a multinational delivery company specializing in the transportation and logistics of packages, documents, and freight. The company was founded in 1907 in Seattle, Washington, and has since grown to operate in more than 220 countries and territories worldwide. UPS offers a wide range of delivery and logistics services, including air and ground delivery of packages, freight forwarding, supply chain management, and e-commerce fulfillment.

Throughout its history, UPS has been known for its innovative approach to delivery and logistics. For example, the company was one of the first to use planes to transport packages, and it has continued to embrace new technologies, such as the use of drones and autonomous vehicles.

In recent years, UPS has also focused on sustainability, intending to use 100% renewable energy for its facilities by 2035 and achieve carbon neutrality by 2050. In addition to its core delivery and logistics services, UPS also offers a variety of value-added services, such as customs clearance, trade management, and financial services.

UPS vs. UPS Competitors

While there are many attractive features of UPS, depending on your company’s needs, there may be a better option out there. For example, UPS may not always offer the lowest rates for shipping heavy packages. UPS also has many surcharges, which can mess with the predictability of your shipping invoices.

Speaking of invoices, regardless of whether you ship via UPS or through a UPS competitor, one of the most critical parts of getting the best pricing on shipping is through help with contract negotiation and ongoing shipping audits. Companies like P3 Cost Analysts can help you understand confusing contracts and claim refunds for billing overages and late deliveries. These steps are essential no matter who your shipping carrier is.

Top 5 Alternatives to UPS

1. FedEx

  • Annual revenue: $84 Billion
  • Number of employees: 547,000
  • Headquarters: Memphis, TN

The biggest shipping company competing with UPS when looking at annual revenue is FedEx. This UPS competitor is a multinational delivery company that offers a wide range of services, including shipping, logistics, and supply chain management.

Founded in 1971, the company has grown to operate in more than 220 countries and territories worldwide. FedEx has developed a reputation for secure and on-time deliveries. While UPS focuses most of its efforts on building and maintaining its epic ground fleet, FedEx has perfected its international delivery network.

2. DHL

  • Annual revenue: $90 Billion
  • Number of employees: 590,000
  • Headquarters: Bonn, Germany

DHL is one of the other delivery companies like UPS with a strong presence in international markets. Originally founded in San Francisco, the company is now headquartered in Germany and connected to Deutsche Post, Europe’s leading parcel provider. DHL offers mostly the same shipping services as UPS, and also has a supply chain division that offers customized solutions for large enterprises.


  • Annual revenue: $77 Billion
  • Number of employees: 630,000
  • Headquarters: Washington DC

The United States Postal Service (USPS) is a government-owned shipping carrier that offers affordable rates and a wide coverage area. Being one of the few shipping companies like UPS that delivers to every address in the United States, including PO boxes and military addresses, USPS is a convenient choice for businesses that need to reach a wide range of locations. The company also offers volume-based discounts and has a long history dating back to 1775, making it an attractive choice for certain businesses.

4. C.H. Robinson

  • Annual revenue: $23.1 Billion
  • Number of employees: 16,877
  • Headquarters: Eden Prairie, Minnesota

Slightly different from the rest of the shipping and delivery companies on our list, C.H. Robinson is a third-party logistics provider (3PL). Companies like this one help businesses streamline their logistics operations. With advanced technology, a strong carrier network, and a wide range of services, C.H. Robinson simplifies the complex logistics industry for its clients around the globe.

Unlike traditional delivery companies like UPS, a 3PL like C.H. Robinson handles more than just the delivery of packages, including tasks such as inventory management, processing, reporting, and freight distribution. If you’re interested in outsourcing some of your logistics operations, C.H. Robinson is worth considering – but it comes with a fee. Alternatively, you can work with P3 Cost Analysts to lower your shipping costs directly with your current provider at no upfront cost.

5. XPO Logistics

  • Annual revenue: $12.8 Billion
  • Number of employees: 44,700
  • Headquarters: Greenwich, Connecticut

XPO is a top player in the less-than-truckload (LTL) freight transportation game, with a vast network that spans the US, Canada, Mexico, and the Caribbean. Their advanced technology enables them to deliver to 99% of US ZIP codes, making them a reliable choice for businesses in need of LTL services.

While XPO’s main focus is on LTL, they are constantly expanding and improving their operations through initiatives like training their own drivers and developing proprietary software. If you’re in need of LTL delivery services, this UPS competitor is worth considering.

Canceling Shipping Contracts

If you’re using UPS for your shipping needs, you may be frustrated by the complexity of your contracts. It can be difficult for the average person to understand the various pricing tiers, weight and zone restrictions, and fine print involved in these agreements.

That’s where P3 Cost Analysts come in. Our team of small parcel audit experts, which includes former pricing analysts from UPS and UPS alternatives, can analyze your contract and compare your rates to local benchmarks to ensure you’re getting competitive pricing. Then, if you decide to make the switch to one of the other delivery companies like UPS, P3 can help you do so.

Even if you’re satisfied with UPS as your provider and don’t want to switch to a shipping company competing with UPS, it can still be a good idea to review it with P3. We can help identify and negotiate better rates on your behalf. With our help, you can be confident you’re getting the best deal possible for your shipping needs.

Find the Best Shipping Rates

Don’t let overpriced shipping fees eat into your profits! When you work with P3 Cost Analysts, we’ll help you renegotiate or secure a new contract that gets you the best rates possible. But our services don’t stop there. Once we’ve helped you secure a great deal, we’ll continue to monitor your invoices to ensure you’re getting all available refunds and not being overcharged.

Your company could be owed thousands of dollars in shipping refunds, but you need to take action to claim them. Auditing your shipping expenses is a time-consuming job, but with P3, you can relax knowing that we’re on the case. We’ll do the hard work for you, and best of all, our services come at no upfront cost to you.

Ready to start saving on shipping costs? Schedule a free consultation with one of our experts today and take the first step towards better rates and bigger profits!

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