In 1852,
Wells Fargo, one of the earliest companies to offer combined banking and express services, was formed. These functions were closely linked, as the handling of California gold and other financial assets required secure methods of transportation across the country. This placed Wells Fargo firmly in the
stagecoach business and led to its participation in the
Pony Express venture. Wells Fargo was preceded by other companies, including the
Butterfield Overland Stage, however, the latter’s failure left much of the overland business in Wells Fargo’s control and resulted in a de facto monopoly on overland traffic until 1869, when the transcontinental railroad was completed. During this period, the company carried regular mail in addition to express packages, effectively bypassing the Post Office’s statutory exclusivity. A compromise was eventually reached in which Wells Fargo charged its own fee in addition to federal postage, acknowledging the Post Office’s limited ability to serve all regions. From 1869 on, package services rapidly moved to the rail, which was faster and cheaper. The express office was a universal feature of the staffed railroad station. Packages travelled as "head-end" traffic in passenger trains. In 1918 the formation of the
United States Railroad Administration resulted in a consolidation of all such services into a single agency, which after the war continued as the
Railway Express Agency (REA). fleet in
Memphis Airport, its main hub On 1 January 1913,
parcel post service began, providing rural postal customers with package service along with their regular mail and obviating a trip to a town substantial enough to support an express office. This, along with
Rural Free Delivery, fueled a huge rise in catalogue sales. By this time the post office monopoly on mail was effectively enforced, and Wells Fargo had exited the business in favour of its banking enterprises. Motor freight services arose quickly with the advent of gasoline and diesel-powered trucks.
United Parcel Service had its origins in this era, initially as a private courier service. The general improvement of the highway system following
World War II prompted its expansion into a nationwide service, and other similar services arose. At the same time, the contraction of rail passenger service hurt rail-based package shipping; these contractions led to the cancellation of the mail contracts with the railroads, which in turn caused further passenger cuts. Eventually, REA was dissolved in bankruptcy in 1975. Air mail was conceived early, and scheduled service began in 1918. Scheduled airlines carried high valued and perishable goods from early on. The most important advance, however, came with the "hub and spoke" system pioneered by Federal Express (now known as
FedEx) in 1973. With deregulation in 1977, they were able to establish an air-based system capable of delivering small packages—including mail—overnight throughout most of the country. In response, the postal service initiated a comparable
Express Mail service. In the same period, they also began contracting with
Amtrak to carry mail by rail. Thus, at the beginning of the 21st century, U.S. consumer could choose from a variety of public and private services offering deliveries at various combinations of speed and cost. By 2018, parcel carriers were hauling 14% of U.S. goods, up from 10% 25 years ago, and FedEx's US domestic volume increased 4.9% in 2018, while UPS reported a 3.3% increase and a 5.6% increase in domestic next-day air package.
Same-day delivery Same-day delivery for local parcels (such as documents) has long been available by local courier. Rail and air transport made same-day delivery feasible over longer distances; for example, packages shipped in the early morning can be delivered (at relatively high cost) anywhere in the mainland United States. Retail goods were seldom sold with shipping any faster than overnight. Some
online grocers such as
AmazonFresh and
Webvan, and delivery services operated by grocery stores like
Peapod and
Safeway have had same-day or next-day delivery windows. Many restaurants have long delivered
takeout locally on-demand, and
online food ordering services have expanded this to many restaurants that would otherwise not deliver. In the 2010s, various experimental services launched, using
online shopping and retail warehouses or chain stores local to the ordering consumer for fulfillment at relatively low cost. The
United States Postal Service "Metro Post" started in 2012, which by 2014 was shipping Amazon orders to 15 cities. In 2013,
Walmart was delivering same-day packages from its own stores in test cities via UPS.
Kozmo.com started a general one-hour local delivery service for small items in 1998, but failed in 2001. Same-day retail service
Postmates began in 2011, and
Google Express began in 2013 with a limited number of vendors and cities. By September 2015,
Amazon Prime Now (which includes selected goods including some groceries) offered 1-hour delivery in 13 cities, and the company launched Amazon Flex, which is a service similar to Postmates using part-time workers to deliver Amazon Prime Now packages. Some
vehicle for hire companies offer courier service and delivery of items ordered online from local vendors. Startups with similar services include
Doorman in San Francisco, Chicago, and New York City, Deliv in San Francisco, WeDeliver in Chicago, and Shutl in Manhattan and Chicago. An alternative to same-day delivery is
in-store pickup, which has been adopted even by previously online-only retailers like Amazon.
Regional parcel carriers In addition, a number of regional parcel delivery companies have sprung up since the 1990s. They combine the track and trace capability of the national carriers with the ability to guarantee next day delivery at ground rates over a larger delivery footprint. Because they are regionally based, they are able to improve shipment time in transit and increase shippers productivity with later pick up times. The regional parcel carriers can be a cost-effective enhancement to UPS and FedEx because they do not charge the full array of accessorial charges mentioned in the section above.
Heavy goods delivery Delivery of heavy goods, such as
furniture or large appliances, requires a different logistical process than most small parcel couriers. For example, the
supply chain of shipping large household goods from their manufacturers, to residential or business locations throughout the country and world is more complex and carries with it a higher potential for damage and error than with smaller packages. Specialized less than truckload shipping carriers handle shipping furniture and other heavy goods from the manufacturer to a
last mile hub. The last mile problem can also include the challenge of making deliveries in urban areas. Deliveries to retail stores, restaurants, and other merchants in a central business district often contribute to congestion and safety problems. Once the goods arrive at the last mile hub, which is typically located less than 200 miles from the final delivery location, a dedicated last-mile carrier, also known as a white glove delivery company, will handle the final leg of the delivery. White glove refers to the highest service level for last-mile delivery of heavy goods. It involves the delivery team bringing the item to the room of choice, unpacking and assembling it, and removing all packaging and debris from the customer's home. There are over 4,000 white glove delivery companies in the United States, most of which only perform local deliveries. Some large less-than-truckload shipping carriers also offer white glove delivery service, and in recent years start-ups have emerged that offer nationwide networks of white glove delivery coverage. With the growth of
E-commerce websites that sell heavy goods throughout the country and world the white glove delivery marketplace is shifting from mostly regional carriers working with local
brick and mortar stores to E-commerce websites working with national delivery networks. ==Package design for distribution==