The courier industry is an $80 billion industry that consists of large, dominant players such as UPS, Fed-Ex and USPS, which are responsible for $72 billion of this revenue. The remaining $8 billion is divided between mid-sized couriers ($2.8 billion) and small local couriers who are responsible for the remaining $5.2 billion. Although there is a significant industry gap, the smaller couriers are still competitive in their regions where they can offer same-day delivery where the big players cannot.

Despite the advantage to offer same day delivery, there are many threats to this segment of the courier industry. These couriers are constantly looking for ways to cut costs, improve productivity and offer superior service, so they can continue to be a preferred choice, stay competitive against the large players and grow.

The Detours

Similar to other industries, the courier market is closely linked to the US economy. Recent downturns resulted in decreased demand and revenue. However there are five key areas where mobility can be used to increase demand and revenue and, when not addressed, can be huge roadblocks in the industry. The key areas where mobile solutions deliver tangible results are: managing independent contractors, reducing lost or damaged shipments, controlling unpredictable costs, sustaining a competitive edge and increasing revenue by enhancing service offerings.

Couriers rely heavily on independent contractors, which are cost-effective because they require only minimal overhead and their willingness to