E-commerce and changing consumer demand have led to an explosion in parcel shipping, which in turn is driving dynamic change in the parcel market. The increased demand for parcels has benefitted the providers of parcel services through increased volume and has changed the relationship between players in the market.
To remain competitive, firms are collaborating with their once rivals as never before — providing processing, transportation, or delivery for one another. For example, both UPS and FedEx use the Postal Service to provide last-mile delivery for a significant portion of their ground parcels.
How You Benefit With Collaboration Between Parcel Carriers
Collaboration between parcel service providers can be a win-win situation for all parties involved. The United States Postal Service (USPS) benefits by earning additional revenues through last-mile delivery. Private package carriers benefit from a lower delivery cost. An added benefit is that all of this happens without the customer paying a higher price. In fact, it is possible that collaboration between parcel services providers can lead to an overall price decrease for the customer.