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Shipping Trends: Could The End Of The Parcel Duopoly Be Near?

July 13, 2022 ShipSigma

ShipSigma Co-Founder and CEO, Chase Flashman, was recently published in Forbes questioning the end of the parcel duopoly.

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Today, parcel shipping is controlled by two goliaths—UPS and FedEx. According to the Pitney Bowes Parcel Shipping Index, they control about 70% of the market share by revenue. After spending more than 10 years at UPS, and now as the co-founder and CEO of a logistics technology company, I have seen firsthand how the market works.

 

A duopoly can have disadvantages, such as limiting free trade. When two companies have such a handle on the majority of the market, it often means that the supply of goods and services lacks diversity—there are limited options for consumers. On top of this, contracts and fees can get convoluted and make it difficult for customers to understand what they are looking at and being charged. There is typically no way to effectively...

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