UPS vs. FedEx: Battle of the Brands

Posted Apr 9th 2007 4:40PM by Kevin Shult
Filed under: Consumer Experience, Competitive Strategy, Marketing and Advertising, FedEx Corp (FDX), United Parcel'B' (UPS), Battle of the Brands

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and watch out for more Battle of the Brands posts.

When you have to send a package and it needs to be there yesterday, who do you call? It usually depends on a few key items: speed, price, and peace of mind.

The two delivery services that dominate the United States are United Parcel Service Inc. (NYSE: UPS) and FedEx Corp. (NYSE: FDX). But which do you think of first?

Let's take a look at each company's marketing practices:

UPS: "What can brown do for you?" The UPS shield is one of the most recognizable icons in shipping, as is the trademarked brown uniform that office secretaries go ga-ga over. Brown is the official sponsor of NASCAR, the NHRA, NTRA, and the Olympics. When looking at the gold shield, a person could think of security and strength. UPS prides itself on those ideas and has become the largest package delivery company in the world.

FedEx: "Relax, it's FedEx" was the well-recognized slogan of the second-largest package delivery company in the U.S. The company's logo has a right-pointing arrow located in the negative space between the E and X. While the arrow becomes quite obvious when pointed out, most people do not notice it. The arrow has been occasionally pointed to as a mild form of subliminal advertising, the arrow suggesting forward movement and thinking (check it out). FedEx is the official sponsor of the NFL, the NBA, the FedEx Cup, FDX Racing, the FedEx Orange Bowl, FedEx Field -- the home field of the Washington Redskins -- and the FedEx Forum in Memphis. With the subliminal arrow and company's name targeted all over the sports world, a person could think of FedEx as a fast company that gets around.

While you may first think of one company before the other, which one can move your goods the fastest? Let's take a look at the size of each company's fleet:

UPS: Brown's union-led 427,700 employees work six days a week with 7.9 million customers in over 200 countries and territories. With over 6,800 UPS stores, 40,000 UPS drop boxes, and 17,000 authorized outlets, it would be impossible not to find a store near you -- and if they're not close, 94,542 package cars, vans, tractors, and motorcycles could pick up your package for you. If it's going long distance, UPS is the eighth-largest airline in the world, boasting a fleet of 282 planes that make over 1,900 flights daily.

UPS handles packages that weigh up to 150 pounds, provides international air delivery and offers standard delivery for Next Day Air shipments. UPS Freight provides less-than-truckload services, enabling customers to send heavier shipments as well.

FedEx: Relax, FedEx's four business segments sports over 275,000 employees and "independent contractors" worldwide who can get packages to you the next day, including Saturday, anywhere in the United States for the right price. In total, FedEx has 42,000 drop boxes, over 9,000 centers, and 70,000 vehicles for express, ground, freight, and expedited delivery service that deliver over 6.5 million packages to more than 220 countries daily. FedEx also owns 672 aircraft and travels to over 375 airports worldwide.

Like UPS, FedEx handles packages of all sizes, but they tack on a surcharge for boxes that weigh more than 70 pounds. FedEx provides international delivery and owns printing centers just like UPS (FedEx Kinko's and The UPS Store). Both companies also own less-than-truckload companies for heavier deliveries.

Looking at both companies, I could make the argument that while UPS owns the road with over 25,000 more vehicles, FedEx controls the skies with three times the fleet of UPS.

Still haven't decided? Take a look at the technology each company uses to help you get your package from A to B.

Both companies have websites and help desks for clients so you could schedule pick-ups, order supplies, track packages and pay bills with a mouse click. But what technology separates the two delivery giants?

This past week, UPS announced the launch of UPS Delivery Intercept, an automated service that provides customers the flexibility and control by enabling shippers to intercept and reroute packages before they're delivered. If you have a habit of sending the home office the wrong files, this product is for you. You can intercept the package, return it to your office and send out the right package before the boss even knows you sent the wrong data.

Earlier this year, FedEx Kinko's added Direct Mail Services and Print Online, providing a convenient resource for office, printing and shipping services. On deadline? Send your presentation to FedEx Kinko's website and they will print it and ship it, saving you the trouble of collating and stapling 500 copies of the latest product design for your boss.

Let's cut to the chase: You have a package and you want it there now. What's the bottom line?

Here's a quick look at what it's going to cost you. I priced a 20 lb. package to my friend in Huntington Beach, California 92605 from Bayside, New York 11361. Here's how the prices came up:

As you can see, both companies have similar prices for next day air but when time isn't the priority, FedEx clearly becomes the better bargain. This might not be the case for every shipment, but I think I just found who to call.

Choosing a delivery service depends on how fast the local service can deliver your product for the right price. I know some women have a thing for men in uniforms, especially the ones in brown during the summer. When UPS started to use the slogan, "What Can Brown Do for You," it always made my secretary smile. Could the same be said for FedEx?

What company do you prefer, and why?

Be sure to vote in our poll for FedEx or UPS as your preferred brand, and let us know why you love it in the comments. Results of all Battle of the Brands match-ups coming soon.

Tags: Battle of the Brands, BattleOfTheBrands, Delivery Intercept, delivery services, DeliveryIntercept, Direct Mail Serivces, DirectMailSerivces, FDX, FDX Racing, FedEx, FedEx Cup, FedEx Kinko's, international delivery, InternationalDelivery, Kevin Shult, KevinShult, Kinko's, Memphis, NASCAR, NBA, Next Day Air, NextDayAir, NFL, NHRA, NTRA, Olympics, Orange Bowl, package delivery, PackageDelivery, subliminal advertising, SubliminalAdvertising, UPS, UPS Freight, UPS Store, UpsStore, Washington Redskins, WashingtonRedskins

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Reader Comments (Page 20 of 20)

381

5-24-2007 @ 11:52PM

Greg said...

Hey,

I'm not a big shipper. However in the 80's my family used ups all the time to ship uniforms from there business to other merchants. We never had trouble with UPS.

30 years later I use Fedex. I've never had trouble with them, Kinkos stays opened all night and fedex delevers on Sat. True there are more UPS Locations Now. But up to a few years ago you had to travel far for UPS. For me I also hate the color brown. So for convience of the 24 hour packing centers and the Saturday delivery I will vote for FEDEX. But don't get me wrong both companies are great!!!

382

6-22-2007 @ 6:58PM

Maxwell Lizza said...

I can't afford either of them. Priority Mail at the post office is UNBEATABLE....pricewise and servicewise.........Peppy in Delray Beach

383

8-02-2007 @ 5:38PM

Burt Siegal said...

I can't believe what I am reading in some of these comments. Our office is in the Chicago area. I gave up on UPS years ago as it was always a gamble when it would get delivered. FedEx people are helpful and dependable. If my life depended on an on-time delivery, it would be FedEx without hessitation. On the receiving end, I just made my fourth call this year over UPS drivers continually leaving ground, home delivery packages on my exposed front porch without ringing the door bell.

384

8-29-2007 @ 6:45AM

Jason said...

I cant believe how ridiculous this information is. I work in UPS management and after reading all this all I want to say is to the consumers: disregard any information you see here. You people are embarrassing both companies and very few of you have any idea what you're talking about.

385

11-25-2007 @ 1:05PM

Vicky Smith said...

What do you mean disregard this information? I am dealing with UPS on a lost package right now. What a bunch of crap. Why don't you share some info about how the overgoods warehouse scheme works? For anyone with a trace on a package check out http://oneoldbat.blog-city.com/chaosatups.htm

386

10-04-2007 @ 3:16PM

Kimball said...

As a shipping manager who is looking at the bottom line, price. FedEx comes in first. The bills I get from UPS are very difficult to read as well.
Both companies are very reliable. They both live and die on the service the driver provides. UPS has a reputation of same driver-same route so the customer is comfortable with them.
However, of all the packages we have sent to both carriers the most damage has been done by UPS.
I like UPS and I would recommend them but I am in FedEx's corner.

387

10-09-2007 @ 6:20AM

Bruce B said...

FEDEX vs UPS - International Shipping:

Beware of FedEx for international shipping!!!

I live in Portugal; ordered a book from the US ($46) - they only ship via FedEx - WHAT A MISTAKE!

FedEx delivery wanted EUR 80 (almost $110) to deliver the book.

When I called FedEx International Reps (agent + manager), they said TOO BAD! We use agents overseas and WE DON'T CARE WHAT THEY CHARGE THE END CUSTOMER! (Oh yes, this was all the broker charge. There was NO customs or duty charge!).

UPS is much better! They delivered without any extra charges.

388

10-12-2007 @ 11:22PM

jack said...

UPS hands down. the pricing compariosn made here is inaccurate. Delivering at 8 Vs 8:30 is a big difference and shipments should be priced accordingly. As far as the USPS, FDX does more business with USPS than any other company and till 2 years ago, UPS never used USPS. The reason UPS uses USPS is becuase customers asked for the service and their shipments is not time critical but they prefer to pay less and still get the advantage of UPS technology like tracking etc. Also, have you had an air pkg to be shipped with FDX and a ground driver shows up? the FDX ground driver refuses to pick it up because it is not "his job" and it should be picked by Epress driver, ridiculous. UPS drivers do everything, one system allows to ship even frieght. Awesome company.. FDX will go after smith goes..

389

11-02-2007 @ 9:06PM

Bluestreak said...

What about "Yellow"? DHL has proven to have superior service internationally, and on the East Coast. Not to mention they're the cheapest.

390

11-15-2007 @ 5:46PM

John said...

I disagree with the comment that because FedEx
Ground Drivers are independent contractors, they
don't serve their customers as well. These guys
work just as hard as UPS and get paid by how many stops and how many packages they deliver and pickup per day. They are even more motivated to make their customers happy because they own their business and their performance directily impacts their pay. I always request FedEx Ground for my business. I like supporting the small businessmen like myself. The UPS driver makes the same salary regardless of how many packages he delivers. I save a little money with FedEx Ground and help out the little guy. I'll take Purple over Brown any day!

391

12-23-2007 @ 7:11AM

JP said...

Brown to the bone

392

12-23-2007 @ 7:23AM

JP said...

guys here is one thing if you need your pkg before 8:30 in the morning there is the ups early am delivery. now you could ship international pkgs without printing all those invoices and ups make your pkg pass to custom quick and easy and i hope you guys know that ups deliver about 14 million pkgs on a regular day and fedex deliver about 7 to 8 million

393

12-31-2007 @ 2:02PM

OuttaLuck said...

I am trucker y trade, and can say I'd rather have UPS deliver my freight rather than FedEx. UPS may have a higher price, and what was said early on about UPS contracting with the USPS is for a "Basic" service that they probably won't get through because of the work rules the Teamster's contract has set forth on them saying, "No outside contractors", which USPS would be at that point.

Also, when in bad weather, I've seen more FedEx Custom Critical, Ground, and whatever else rolled in a ditch than I have UPS, or any other trucking company. FedEx has that mentality "Gotta Get It There" where as UPS is more "Gotta Get It There, but, if it's too bad to drive, forget it, I'll wait until the roads are better"

394

1-04-2008 @ 9:08PM

Antonio said...

Sorry, but I'd like to see some statistics to back that claim about one having more roadside issues than the other.
Then again, I'd like to see statistics for most of what's in these comments.
As best as I can tell, as someone who's lived all over the country, moving around every three years or so (due to my previous employment) it depends a lot on the area. I've lived in some areas where the service of one company was just stellar while the others were still good or ok, some areas were all were reliable but not stellar, and, like now, areas where one or two were completely mediocre. I currently live in San Francisco, and I can tell you, I wouldn't go with either UPS or Fedex for ground service here. UPS can never seem to get it to me on time and Fedex seems to damage most of my packages. USPS seems to be the only one who can get it to me on time and n one piece. I even witnessed, one afternoon, two Fedex guys, parked on the corner of my street, essentially tossing my packages out of the back of their truck and onto the street before carrying them down to my house! This is NOT acceptable! Yet, while in Colorado, I'd swear by Fedex! For overnight outgoing, I'd still use Fedex, as I tend to only send documents and they go directly from one of the Fedex Kinkos. UPS? In most areas I've lived in, they've been as good as Fedex or nearly so. In San Francisco, they have taken, usually, seven days for shipments which Fedex and USPS deliver within four and never have it to my door before 5:00PM. Overall, between all three, USPS has been the most consistent between areas, never taking longer than 4 days for any level of delivery and rarely longer than 3 for Priority Mail. And they deliver on Saturdays with no extra charge. The only issue I've had is the general annoyance of waiting in their lines for service, but then, the Post Office isn't designed for fun, now is it?

395

1-04-2008 @ 8:16PM

kaljfiojwkefjksadjfkjaf said...

I love the UPS. If we are not home when they come and if it is raining they have to decency to put it between the door or right inside the door. That tells me that they care. FedEx will leave it out in the rain. I dont care if I have to wait untill Monday to get my item. I would rather do that than order from FedEx. Go Brown!