Courier and Messenger Services

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.

Jul 28, 2026 - Rising Costs Push Couriers to Deliver Smarter, Not Faster

• Profitability is replacing speed as the courier industry's top priority in an industry faced with ever rising transportation costs. Labor, insurance, fuel, and vehicle costs continue to climb, and courier and messenger companies are placing greater emphasis on improving the efficiency of last-mile delivery rather than simply offering ever-faster service. Last-mile delivery can account for more than 40% of total shipping costs, according to Supply Chain Management Review, making it the industry's biggest opportunity for cost savings. In response, carriers are investing in route optimization software, AI-powered dispatching, parcel lockers, and delivery consolidation to reduce miles driven, improve driver productivity, and cut costly failed deliveries. Many are also encouraging customers to choose flexible delivery windows that allow multiple packages to be delivered on a single route. The shift reflects a broader industry reality: efficient delivery is becoming a more important competitive advantage than the fastest delivery.
• US online grocery sales hit a record $12.3 billion in late 2025, driven largely by the booming delivery segment, according to a recent survey from Bricks Meets Click Grocery Survey and Mercatus. It’s a 29% year-over-year jump, showing that more and more shoppers are skipping the store and having their groceries delivered. Delivery orders alone surged 45% year-over-year, now accounting for 50% of all e-grocery sales (with younger shoppers leading the way). Ship-to-home orders also grew, up 12%, 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.
• Rising gas prices are hitting gig economy workers especially hard, with the average price of unleaded gas surging roughly 50% by May to about $4.49 per gallon (the highest since mid-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.

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.