Two of the most well-known companies when it comes to working in the package delivery sector are UPS and FedEx. Both of these businesses have been in business for many years and have established a solid reputation for providing dependable and effective delivery services. The topic of which firm pays better—UPS or FedEx—may arise for many people.
The average hourly pay for a FedEx package handler is $15.25, while the average hourly pay for a UPS package handler is $14.64, per Glassdoor data. Although the little wage discrepancy may not seem like a big deal, it can mount up over time. For instance, the salary gap would be nearly $1,000 if a package handler worked 40 hours per week for 52 weeks in a year.
Notably, both UPS and FedEx provide their staff with benefit packages that may include paid time off, retirement plans, and health insurance. Depending on the position and location of the employee, these benefits may differ, but they can significantly improve the total compensation package.
The less-than-truckload (LTL) subsidiary of UPS, UPS Freight, was going to be sold to TFI International in January 2021 for $800 million. In order to concentrate on the company’s primary package delivery business, it was decided to sell this division. UPS can concentrate on growing its package delivery services, which have enjoyed rapid development in recent years due to the growth of e-commerce, by divesting from UPS Freight.
Even though Amazon has recently increased its delivery options, it is unlikely that the business would take over UPS. UPS has a well-established network of delivery personnel, aircraft, and warehouses that would be challenging for Amazon to match. Additionally, UPS and Amazon have a history of working together as delivery partners, making it unlikely that Amazon would attempt to directly compete with UPS.
Yes, UPS’s UPS Freight business does provide less-than-truckload (LTL) freight services. As was already mentioned, the corporation has stated that it intends to sell this segment in order to concentrate on its primary package delivery operation. Why did UPS decide to change its name?
UPS was established as the American Messenger Company in 1919. In order to better represent its focus on parcel transportation, the corporation changed its name to United Parcel Service in 1930. The company’s new name was also intended to set it apart from its rivals, who were only concerned with sending telegraphs and other messages. Today, UPS is recognized as a market leader in the delivery of packages.
In conclusion, FedEx does pay significantly more for package handlers than UPS does in terms of salary. But both businesses provide benefit packages that can significantly boost an employee’s pay. Despite recently selling its LTL operations to concentrate on its core package delivery business, UPS is still a major participant in the sector. Given the long-standing partnership between the two businesses and the difficulty of replicating UPS’s delivery network, it is doubtful that Amazon will take over UPS.