Key Points
- According to an Alix Partners survey, FedEx and UPS are facing increased competition as last-mile delivery providers, with UPS the one losing ground to date.
- Retailers are focusing more on cost as satisfying the delivery speed consumers have become accustomed to demanding, such as same-day, hasn’t paid off financially.
Consumer need for speed in package delivery, which has reached its apex with same-day shipping, has placed retailers in a tough spot when managing transportation costs. The result is increased competition among shippers for retail volume in a market dominated by FedEx and UPS, according to a new survey from global consulting firm AlixPartners.
Retail executives surveyed say that as more consumers—especially younger consumers—demand same-day delivery, the financial payoff isn’t there.
Published CNBC Wed, Jul 24 202412:23 PM EDT Updated Wed, Jul 24 20241:41 PM EDT
Author: Lori Ann LaRocco@loriannlarocco