In today's modern global economy, it has become easy to take fast and reliable package delivery for granted. In fact, many of us are accustomed to browsing e-commerce sites or retail catalogues, placing an order online or over the phone, and then having the merchandise delivered directly to our doorstep -- often within 48 hours. 

However, it goes without saying that consumers and businesses have not always had this luxury. At the turn of the 20th Century, it was sometimes difficult to have something shipped across town -- let alone the world. 

It all started . . . 
In 1907, an ambitious young teenager named Jim Casey borrowed $100 from a friend to launch a new messenger and delivery service in Seattle. With a commitment to low rates, reliable delivery and responsive customer service, the budding firm quickly became prosperous.

In the beginning, the firm's employees routinely made their rounds on foot, reserving bicycles for longer deliveries. Keep in mind, this was still the age of horse and buggy, and the U.S. Parcel Post system wouldn't be in existence for another six years.

By 1918, the growing company acquired its first delivery car (a Model T Ford) to complement a small fleet of motorcycles. At this point, many of Seattle's most prominent department stores had already found it advantageous to suspend their internal shipping operations and have this up-and-coming firm deliver their merchandise. 

With a few years, the company would branch out to surrounding communities. It also established a presence in Oakland, Los Angeles, and many other major metropolitan areas on the Pacific Coast. 

By the time of the Great Depression, the firm's geographic footprint had stretched clear to the East Coast, and over the next few decades it would lobby the Interstate Commerce Commission for unfettered rights to ship both private parcels and commercial products to every single address in the 48 contiguous states -- a request that was finally granted in 1975. 

Amid rising demand for speedier deliveries, the company would have a coast-to-coast network of overnight air deliveries in place by 1985, and over the next few years it would expand that air service throughout Europe and the Pacific Rim. Eventually, it would grow into the worldwide package delivery powerhouse we know today -- United Parcel Service (NYSE: UPS).

New Kids on the Block
With a 100-year history and a series of innovations, including the first package conveyor belt, it is easy to trace the birth, baby steps and eventual growth of the parcel delivery business back to UPS.

Of course, success always invites competition.

In 1969, Belgium-based DHL (a subsidiary of Deutsche Post) began shipping documents from the mainland to Hawaii, and has since established itself as one of the leading providers of worldwide express deliveries. Today, the company has a fleet of 76,000 vehicles that carry packages to roughly 120,000 destinations in more than 200 countries around the globe.

And finally, FedEx (NYSE: FDX) was the last of the big three to enter the game -- it didn't begin full-scale operations until 1973. However, it didn't take long for the firm to gain ground, and ten years later it became the first U.S. company to reach $1 billion in annual sales without the benefit of a merger or acquisition. 

As with almost any industry, a number of smaller package delivery firms are trying to carve out their space, but together the triumvirate of UPS, FedEx, and DHL dominates the field.

Because DHL is a subsidiary of a foreign firm that doesn't trade as an ADR on a major domestic exchange, we will focus our attention primarily on FedEx and UPS. In the paragraphs that follow, we will give you a full run-down of everything you need to know before investing in one of these firms . . .

Important Note: Throughout the remainder of this article, editor Nathan Slaughter and our research staff provide an in-depth look at UPS and FedEx. However, in order to view the remainder of this article, you'll need to subscribe to our premium newsletter -- Half-Priced Stocks. After you subscribe you'll receive immediate access to this full article, as well as our monthly Half-Priced Stocks newsletter and a host of additional premium content. Please visit one of the following links to continue...

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