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Couriers and messengers on the go

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Bike messengers and couriers zip through downtown traffic. An Internet order arrives from the other side of the world. A time-sensitive document must get from Halifax to Vancouver. A pizza is delivered from across town. In our fast-paced world, quick courier and messenger services are increasingly in demand.

In 2003, Canada had 20,500 couriers and local messengers, a 14% increase from 1999. Although total revenues for these carriers rose 23% from 1999 to 2003 to $5.8 billion, total expenses climbed 26% to $5.4 billion, offsetting any major gains in profits. Nearly one-half of the revenue for the industry came from Ontario alone, where 8,500 couriers and local messengers are located.

Only 13% of the industry’s firms are couriers, yet they generated 79% of the industry’s revenue in 2003. There are many more local messenger services, but their revenues as well as their profits are much smaller.

Chart: Couriers and local messengers industry, revenue and expenditures, by industry size, 2003Most of the industry’s courier and local messenger deliveries are made to destinations in Canada, 18% to the United States, while 5% go elsewhere in the world.

Fully 98% of the courier and local messenger services are small businesses. Medium-sized and large firms each made up only 1% of the industry. However, the large firms earn 71% of the industry’s total operating revenue.

International shipping is done almost exclusively by courier businesses, which take in 98% of the revenue from deliveries into and out of Canada.