A Brief History of the Package Delivery Industry
A BRIEF HISTORY OF THE PACKAGE DELIVERY INDUSTRY
May 5, 2003
I. Overview
The package delivery industry, which consists of small package and express letter shipments, has changed dramatically over the years. Radical changes have occurred in the goods transported, the geographic scale of the marketplace, customers needs, the range of service options that carriers offer, and the transportation and communications technology that carriers employ. The market today bears little resemblance to the market of 30 years ago (at about the time of the Postal Reorganization Act). It bears even less resemblance to the market of 100 years ago (at about the time Parcel Post service began). It is therefore illogical to consider the package market from 30 years ago, or 100 or more years ago, and draw meaningful public policy conclusions for today and for the future. For example, which carrier entered the market “first” is irrelevant for evaluating the potential role of the Postal Service, or any of the carriers, in the modern package delivery market.
The following provides a brief overview of the various phases of the evolution of the package delivery industry and the key players. The history of the industry reveals a story of innovation, adaptation, risk-taking and customer demand driving development, with the private sector at the forefront.
II. Early Package Movements (Mid-1800’s to Turn of the Century)
Wells Fargo was founded in 1852. While not the only private express company at the time, Wells Fargo provided a central and colorful role in the early package delivery industry. They created a formidable enterprise for mail and package delivery and banking, especially in the West. In addition to its banking and mail carriage role, it exemplified the early private package industry. One of the founders, Henry Wells, had been a partner in a mail and package delivery business in the East (and even at one time considered acquiring the Post Office
May 5, 2003
I. Overview
The package delivery industry, which consists of small package and express letter shipments, has changed dramatically over the years. Radical changes have occurred in the goods transported, the geographic scale of the marketplace, customers needs, the range of service options that carriers offer, and the transportation and communications technology that carriers employ. The market today bears little resemblance to the market of 30 years ago (at about the time of the Postal Reorganization Act). It bears even less resemblance to the market of 100 years ago (at about the time Parcel Post service began). It is therefore illogical to consider the package market from 30 years ago, or 100 or more years ago, and draw meaningful public policy conclusions for today and for the future. For example, which carrier entered the market “first” is irrelevant for evaluating the potential role of the Postal Service, or any of the carriers, in the modern package delivery market.
The following provides a brief overview of the various phases of the evolution of the package delivery industry and the key players. The history of the industry reveals a story of innovation, adaptation, risk-taking and customer demand driving development, with the private sector at the forefront.
II. Early Package Movements (Mid-1800’s to Turn of the Century)
Wells Fargo was founded in 1852. While not the only private express company at the time, Wells Fargo provided a central and colorful role in the early package delivery industry. They created a formidable enterprise for mail and package delivery and banking, especially in the West. In addition to its banking and mail carriage role, it exemplified the early private package industry. One of the founders, Henry Wells, had been a partner in a mail and package delivery business in the East (and even at one time considered acquiring the Post Office