In 2024, the U.S. parcel market reached a record-breaking 23.8 billion packages, up 4% year-over-year and 50% higher than 2019. However, traditional logistics giants like FedEx and UPS are no longer the primary beneficiaries of this growth.
A new generation of regional last-mile delivery companies—including Veho, Better Trucks, OnTrac, UniUni, and others—are rapidly gaining traction. At the same time, retail giants like Amazon and Walmart are expanding their own logistics networks, reducing reliance on third-party carriers.
Why the Shift?
According to a recent report by ShipMatrix Inc., several key trends are driving this transformation:
- E-commerce growth is fueling higher delivery density and consumer expectations for faster, more flexible service.
- Retailers are insourcing logistics, building their own fleets to gain control over customer experience, cost, and delivery speed.
- Regional carriers offer agility, local focus, and tech-driven operations that outperform traditional networks in underserved or “last-mile dead zones.”
For instance:
- Amazon delivered 6.1 billion packages in 2024—more than FedEx—and far ahead of its 1.7 billion in 2019.
- Walmart saw delivery volume grow 44% year-over-year, hitting 2.3 billion parcels.
- FedEx’s volume declined slightly to 3.4 billion, while UPS handled 4.8 billion.
What Does This Mean for the Industry?
We’re witnessing a fundamental reshaping of the logistics ecosystem. The parcel market is shifting:
- From centralized to distributed networks.
- From mass-scale to localized, flexible fulfillment.
- From “carrier-led” models to platform-coordinated ecosystems.
Platforms like Shipium, OneRail, and X Delivery are integrating multiple regional carriers into unified networks, allowing e-commerce brands and sellers to choose optimized routes and improve delivery performance.
Notably, UniUni—a rising player in the cross-border delivery space—has become a key enabler for Chinese platforms like Temu and SHEIN, delivering deep into Tier 2 and Tier 3 U.S. cities. By leveraging regional sort centers and crowdsourced drivers, they offer fast, affordable delivery without relying on traditional national hubs.
A New Delivery Paradigm
While regional carriers may not yet replace national networks entirely, they are playing an increasingly vital role in filling service gaps, reducing costs, and improving the customer experience. This evolution mirrors broader changes in retail—from platform-based commerce to omnichannel ecosystems.
Delivery is no longer just a logistics function—it’s a brand differentiator and a critical component of customer satisfaction.
At YiBest Sourcing, we closely monitor these logistics trends to help our clients build smarter, more resilient supply chains. Whether you're a DTC brand, a cross-border seller, or a marketplace vendor, understanding the dynamics of last-mile delivery is key to long-term success.
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