Courier and Messenger Services NAICS 4921, 4922
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Industry Summary
The 10,880 courier and messenger services in the US provide express delivery, by air or ground, of documents and parcels within and between cities. Messenger services provide local delivery of documents and parcels as well as groceries, alcoholic beverages, and restaurant meals.
Volatile Fuel Costs
Firms with a fleet of delivery vehicles incur fuel costs that can fluctuate significantly from year to year.
Stiff Competition
The courier segment is dominated by FedEx, UPS and DHL, which have strong brand recognition, national delivery networks, and are easy to contract.
Recent Developments
Mar 23, 2026 - High Gas Pricing Hitting Gig Workers Hard
- Rising gas prices are hitting gig economy workers especially hard, with the average price of unleaded gas surging roughly 22% over the month of March to about $3.59 per gallon (the highest since May 2024) following US-Israeli strikes on Iran, forcing rideshare drivers, food couriers, and delivery workers to rapidly adjust by avoiding short trips, scouting cheaper gas stations, and exploring additional income streams. Relief may not come soon as crude oil remains volatile and seasonal factors typically push prices higher in spring. Some gig workers have called on platforms like Uber and DoorDash to introduce gas surcharges similar to those rolled out during the 2022 price spike, while the situation is further compounded by rising insurance and repair costs. Freight dispatchers warn the pain will extend beyond gig workers, as higher diesel prices will likely raise trucking costs and ultimately push up consumer prices at stores nationwide.
- UPS is set to cut 30,000 more operational jobs in 2026, continuing a restructuring trend that included 48,000 cuts last year. The company is targeting cost savings through voluntary separations, attrition, facility closures, and expanded automation, following a strategic reduction in Amazon package volumes. Despite these cuts, UPS posted higher quarterly profits and anticipates slightly higher revenue this year, signaling that efficiency measures are offsetting lower parcel volumes. For UPS itself, the moves streamline operations, modernize its network, and reduce labor costs. In the wider industry, these cuts reinforce ongoing pressure on parcel carriers to focus on capacity amid declining e-commerce growth from major clients, while highlighting the growing role of automation in shaping the future logistics landscape.
- The United States Postal Service (USPS) is positioning itself as a major player in last-mile delivery by expanding its network to handle more e-commerce shipments and returns. With delivery to every US address six days a week, the Postal Service offers unmatched reach for the final leg of package journeys. It is exploring partnerships with carriers like UPS and other shippers to provide last-mile solutions, including options like Ground Saver. USPS is also moving into faster delivery services, such as same-day and next-day options, making its network more attractive to both large and small retailers. Its about 33,000 facilities provide a national infrastructure for package drop-offs and returns, helping e-commerce businesses streamline logistics while reducing delivery times. By leveraging existing capacity, USPS could become a central hub in US last-mile logistics.
- US online grocery sales hit a record $11.2 billion in August 2025, driven largely by the booming delivery segment, according to a recent survey from Bricks Meets Click Grocery Survey and Mercatus. It’s a 14% year-over-year jump, showing that more and more shoppers are skipping the store and having their groceries delivered. Delivery orders alone surged 30% year-over-year, now accounting for 45% of all e-grocery sales (with younger shoppers leading the way). Ship-to-home orders also grew, up 19%, but doorstep delivery is the clear preference for consumers. The growth comes not just from more people trying online grocery shopping, but also from bigger and more frequent orders. Even casual or infrequent shoppers are jumping on the trend, drawn by convenience, flexible scheduling, and contact-free delivery. Overall, the numbers show that grocery delivery has moved from a pandemic-era perk to a core part of how Americans shop.
Industry Revenue
Courier and Messenger Services
Industry Structure
Industry size & Structure
A typical courier and messenger services firm employees about 100 workers and generates $13.7 million in annual revenue.
- The courier and messenger services industry consists of about 10,880 companies that employ about 1.1 million workers and generate about $150 billion annually.
- The courier segment is highly concentrated with the four largest firms representing 91% of revenue. The messenger segment is highly fragmented with the 50 largest firms representing 45% of revenue.
- Large courier companies include FedEx, UPS, and DHL. Document and parcel messenger services, which operate locally, include Western Messenger (San Francisco), NY Minute (New York City) and Pro Messenger (Dallas). Grubhub and DoorDash are technology firms that use an app and contracted drivers to order food from client restaurants and deliver it to local customers.
- About 13% of establishments are franchises. Over 70% of franchised establishments are franchisee-owned.
Industry Forecast
Industry Forecast
Courier and Messenger Services Industry Growth
Source: Vertical IQ and Inforum
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