When will the pace pick up? There have been notable market exits.
-Pandion, Pitney Bowes, Maergo, Point Pickup/PICKUP, Deliver It
But very few acquisitions. [ACI/Sendle/First Mile merger comes to mind] The exits are unfortunate, but it also reflects the market.
- Funding has dried up
- Carriers are cutting staff
- Amazon Shipping is a threat
- There are too many providers
- Retailers are insourcing delivery
- Market volume growth is sluggish
- Carriers have to compete on price
- The USPS has a solid Ground product
Consolidation hasn’t really taken hold yet. Lightweight residential volume, a segment that’s still propped up by Chinese retailer volume, is sustaining some carriers. And several carriers continue to expand coverage/capacity, despite intense price competition. It’s not sustainable indefinitely. There will be consolidation. But it’s unclear whether it will happen slowly, as we’ve seen in the past two years through attrition, or if it will be accelerated by disruptive market events.
Original publish date: November 4, 2025