Fedex Corporation

FedEx Corporation (FedEx) and

United Parcel Service, Incorporated

(UPS) are industry leaders in air and

ground package distribution and specialized

transportation and logistics

services. The companies compete on

a global scale and have established

strongholds on particular aspects of

the shipping business. UPS achieved

its status primarily on the strength of

its time-definite ground delivery of

packages and documents. FedEx traditionally

attributes its success and

reputation to its unmatched performance

in overnight deliveries. UPS

delivers an average of over 13 million

packages each day. FedEx averages

approximately 5 million daily deliveries,

but surpasses UPS in air deliveries,

3.1 million to 2 million. The two

rivals have grown out of very different

beginnings to occupy their current

standings in the marketplace. As technological

advances enable UPS and

FedEx to carry their respective businesses

to greater heights, the evolution

of the technology has them walking

a fine line between fanning the

flames of competition and growing

side by side.

Nearly a century old, UPS has

grown from a two-man, two-bicycle

operation in Seattle that promised

the "best service and lowest rates"

into a 355,000-employee corporate

giant with a delivery fleet of 88,000

ground vehicles and nearly 600 airplanes.

The fleet services 1.8 million

shipping customers daily, bringing

deliveries to 6.1 million consignees.

UPS first expanded to Europe in 1975.

In 2003, UPS revealed a $600 million

improvement initiative for its package

sorting and delivery systems. By 2007,

UPS expects this initiative to result in

a $600 million annual reduction in

operating costs, mostly as a result of

productivity improvements and more

efficient driving routes.

UPS counts global reach, technology

systems, customer relationships,

brand equity, and e-commerce

capabilities among its competitive

strengths. The company's growth

strategies include building on its status

as the leader in domestic package

operations, continuing to expand

internationally, offering comprehensive

supply chain solutions to businesses

that seek to outsource such a

complicated business component, and

backing up the core delivery service

with a strong portfolio of e-commerce

solutions. UPS.com fields more than

9 million requests for package tracking

each day, and the Web site receives

115 million daily hits overall.

FedEx Corporation is the parent

company of the various operating