Industry Analysis & Industry Trends
The Global Courier and Delivery Services industry struggled for growth over the past five years. In the years following the global economic slowdown, the industry experienced a period of rapid growth from its recessionary lows, as the global economy improved and developed economies stabilized. Over the past five years, a large portion of the industry's growth has come from greater business activity and demand for time-sensitive goods in emerging economies. The growing number of individuals with internet access has also aided revenue. With more consumers using e-commerce websites, a greater number of goods need to be transported using courier and delivery services... read more
Starting a New Business
The industry has moderate barriers to entry. Barriers are higher for global integrators (in the international express market) but lower for entrants into niche or domestic express markets. As an extreme example, anyone with a vehicle and communication equipment such as a mobile phone can operate a business. These types of participants do exist and service market niches. However, they suffer from a lack of bargaining power and are usually price-takers. On the other hand, large nationwide and international operations require significant capital to set up operations.
There are minimal regulations and licensing requirements preventing companies from entering the industry... read more