In this article, we will discuss: 10 Best Delivery Stocks to Buy According to Billionaires.
The growth of global e-commerce is linked to a surge in demand for delivery services. According to research by environmental organization Stand.earth, global e-commerce is anticipated to grow at a rate more than twice that of in-store purchases. It is anticipated that by the end of this decade, 25,000 parcels will be shipped per second. The rise in global e-commerce has also produced a change in people’s shopping behaviors around the world. Online shopping accounts for about 15% of all American purchases, with an estimated yearly value of $1 trillion, as reported by Bloomberg.
ParcelHero projects that the global delivery and courier market will reach $648 billion by 2030, expanding at a compound annual growth rate (CAGR) of 4.31%, driven by improved logistics technologies and e-commerce. The market was valued at $482.9 billion in 2023, representing a 2.5% annual growth rate with a 5% growth from 2018 to 2023. The UK market is projected to reach $32 billion by 2030, with a compound annual growth rate (CAGR) of 6.22% from its 2023 valuation of $20.97 billion. The transportation management systems market is anticipated to surge by 19.7% from its 2023 valuation of $13.5 billion to $33.3 billion by 2028. Innovations in technology, such as tracking, automation, and AI-powered logistics, will boost productivity and accommodate growing package volumes.
Shipping and delivery times remain a key concern for customers. Recent data from Digital Commerce 360 and Bizrate Insights reveal that customers have remained committed to giving free and quick shipping top priority while placing online shopping in 2024. According to the survey of 1,013 online buyers, 81.34% of them rank free shipping as their main concern when receiving deliveries. Next in line is fast shipping, which was highlighted by 68.41% of respondents. Furthermore, 55.68% of customers stressed how important it is for merchants to maintain inventory and shipping readiness.
The demand for food delivery services has also increased dramatically as a result of the COVID-19 outbreak. Restaurants had to rely more on outside delivery services to stay afloat since dine-in options were shut down or severely restricted in many areas of the United States. Additionally, online grocery delivery and pickup services flourished as customers avoided going to stores. According to Bloomberg, online restaurant ordering accounted for about 40% of total restaurant sales in 2023, just over $22.4 billion in 2021, and has grown 300% faster than dine-in sales since 2014. CB Insights forecasts that the food delivery market size will grow to $320 billion by 2029.
In addition, drone technology is increasingly being used across the US, with leading companies providing faster delivery services, particularly for short-distance shipments. As per McKinsey, drone delivery services are expanding, with over 800,000 paid commercial deliveries globally by 2023. According to the firm’s most recent projections, the total addressable market in the United States alone is predicted to reach $5 billion by 2035, with an estimated 1.5 billion deliveries annually. Therefore, drone delivery is one of the first commercialized sectors of the larger future air mobility market, which also includes other platforms that use new aircraft, like urban and regional air mobility, as well as other commercial drone use cases, such as inspection or surveillance.
Even though drone deliveries are not yet widely available, 83% of consumers in six countries who participated in a McKinsey survey were aware of them. India leads at 92% and the U.S. comes in last at 53%, with 76% of respondents saying they would be willing to switch, reflecting a 19% growth from 2021. With 35% willing to pay up to 1.5 times more, 58% of respondents are willing to pay a premium. The most preferred use case is express shipping (56% are willing to switch), which is followed by food and medical delivery. Urban residents (80%) and frequent consumers (68% prepared to pay more for food delivery) have the highest adoption potential. Finally, operators should put speed and convenience first because 20% of customers currently pay for expedited shipment, showing that there is a high demand for faster alternatives.
With that said, here are the 10 Best Delivery Stocks to Buy According to Billionaires.
Our Methodology
For this article, we scanned Insider Monkey’s Q4 2024 proprietary database of billionaires’ stock holdings and identified delivery stocks from the list. These companies are involved in logistics, shipping, and last-mile delivery services. From there, we picked the top 10 stocks with the highest number of billionaires having a stake in them. Where two or more stocks were tied on billionaire sentiment, we used the dollar value of billionaire holdings as a tiebreaker between them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Maplebear Inc. (NASDAQ:CART)
Number of Billionaires: 10
Billionaire Holdings: 1,399,964,769
Maplebear Inc. (NASDAQ:CART) (Instacart) is included in our list of the Best Delivery Stocks. Its grocery delivery platform is widely recognized throughout the United States, with over 600,000 drivers and a network of about 8 million monthly active consumers. In 2020, the company profited from a pandemic-driven spike in online grocery ordering, with a gross transaction value of almost $20 billion (compared to $5 billion in 2019) as retailers rushed to partner with Instacart to satisfy customers’ changing preferences for home delivery.
Online grocery shopping has a low penetration rate of 14%, and Maplebear Inc. (NASDAQ:CART) is a well-known participant in this market with 12 years of expertise. It held a 24% market share at its peak, compared to 19% today. After Walmart (34%) and Amazon (24%), it takes the third-largest market share.
The firm achieved a great fiscal 2024 fourth quarter with top-line growth of 10%, and adjusted EBITDA margin grew by over 400 basis points to 28.5%. However, management’s projection for the first quarter of fiscal 2025 suggested a more subdued gain from operating leverage compared to the previous year, which caused shares to plummet 10% in after-hours trading. In contrast to Maplebear Inc. (NASDAQ:CART)’s fiscal 2024 full-year results, which saw adjusted EBITDA grow by a staggering 38% and gross transaction value expand by 10%, the midpoint of management’s estimate suggests growth of roughly 14% and 9%, respectively.
The business unveiled the Caper Cart, a smart cart driven by AI that streamlines the checkout process and provides customers with tailored suggestions. Maplebear Inc. (NASDAQ:CART) has recently shown its dedication to innovation by launching Caper Carts globally in Austria in collaboration with ALDI. The company is committed to establishing a smooth shopping experience that bridges the gap between online and in-store buying, and it has ambitions to further develop its technology and services.
9. Old Dominion Freight Line, Inc. (NASDAQ:ODFL)
Number of Billionaires: 11
Billionaire Holdings: 299,299,868
Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is one of the Best Delivery Stocks. It is now the second-largest US less-than-truckload carrier by revenue (after FedEx Freight) and the clear industry leader in terms of execution, freight selection, and service quality, all of which are important considerations for shippers when choosing a carrier. The company’s remarkable pricing discipline helped it stay afloat even during the Great Recession. It remained stable and maintained a constant core revenue per hundredweight when other carriers drastically reduced their rates.
In 2024, Mastio & Company selected the top LTL motor carrier for quality as the #1 National LTL Carrier for an unprecedented 15th year in a row. The comprehensive industry analysis of LTL carriers identified Old Dominion Freight Line, Inc. (NASDAQ:ODFL) as the top carrier for quality, according to logistics specialists polled on carrier performance for 15 years, dating back to 2010.
Expert in less-than-truckload, the firm’s fourth-quarter 2024 revenue dropped by 7.3% year over year due to reduced fuel surcharges and softer tonnage. Despite being the industry leader, profits declined once more, mostly as a result of decreased operating leverage.
Nonetheless, Conestoga Capital Advisors stated the following regarding Old Dominion Freight Line, Inc. (NASDAQ:ODFL) in its Q4 2024 investor letter:
“Based in Thomasville, NC, Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is one of the country’s largest less-than-truckload (LTL) carriers, an industry which has high barriers to entry. The company generated industry leading profit margins because of the durable competitive advantages it has created over decades including a balanced network and superior service. The freight industry is coming off a two plus year volume recession and we anticipate ODFL will resume its historical cadence of share gains in the next freight upcycle.”
For the fourth quarter of 2024, its net cash from operating activities was $401.1 million, and for the entire year, it was $1.7 billion. As of December 31, 2024, the company’s cash and cash equivalents were $108.7 million.
8. Lyft Inc. (NASDAQ:LYFT)
Number of Billionaires: 11
Billionaire Holdings: 746,423,169
Lyft Inc. (NASDAQ:LYFT) is among the Best Delivery Stocks and the second-biggest ride-sharing service provider in the US and Canada by using the Lyft app to link drivers and passengers. Founded in 2013 and going public in 2019, it provides a range of private automobile trips, including premium, shared, and standard private rides. To provide users with multimodal transportation options, the firm has ventured into the bike and scooter-sharing market in addition to ride-sharing. Its alliances with emerging AV startups such as May Mobility, Mobileye, and Nexar pave the way for future, more beneficial AV alliances.
Lyft Inc. (NASDAQ:LYFT) hit important milestones in 2024, with drivers earning roughly $9 billion, the most in the platform’s history. By recording the fastest average ETAs in the business and cutting pickup times by about a minute over the previous year, the company improved customer service levels. A large cut of Primetime (surge pricing) resulted in savings for riders of almost $400 million. Furthermore, the company produced $766 million in positive free cash flow and became profitable under GAAP for the first time. Lyft Black and Lyft SUV rides jumped by 41% year over year, while rides rose 15% and active users grew 10% in Q4, showing an expansion of high-margin services.
The business also revealed intentions to pay back convertible notes that are due in May 2025 and a $500 million share buyback program, showing its sound financial standing and dedication to increasing shareholder value.
7. Domino’s Pizza, Inc. (NASDAQ:DPZ)
Number of Billionaires: 13
Billionaire Holdings: 1,392,251,707
Domino’s Pizza, Inc. (NASDAQ:DPZ), a fast-food pizza restaurant, has a well-established food delivery system of its own. The business can save money on fees and have total control over the delivery process and customer experience by not depending on outside delivery partners, making it one of the Best Delivery Stocks to consider.
Domino’s Pizza, Inc. (NASDAQ:DPZ) has benefited from the pandemic; in 2020, same-store sales in the US grew by 11.5% year over year. Despite an enormous boom in restaurant delivery alternatives from outside delivery services like DoorDash, the company saw a rise in sales.
The firm has progressively expanded its market share in the United States, rising from 13.5% in 2015 to 22.9% in 2024. Approximately 1,750 shops were opened between 2015 and 2023. Domino’s Pizza, Inc. (NASDAQ:DPZ) increased the number of its system stores to 6,930 in fiscal Q3 2024 by adding 24 net new locations to its portfolio in the US. Furthermore, the company’s retail sales in the US increased by 5.1%. Its same-store sales, which grew by 3% for the fourth consecutive quarter as of fiscal Q3 2024, were credited with this rise. Gains in the company’s market share were fueled by these favorable outcomes.
An ongoing competitive advantage is the company’s solid internal delivery system. Moreover, the international business of Domino’s Pizza, Inc. (NASDAQ:DPZ) has room to grow. The company is putting plans and strategies into place to increase net store growth and generate sales momentum in the international market. For example, it is concentrating on aggressive promotional pricing to deliver a consistent value message to customers who are looking for value, maximizing orders from aggregators, and expanding its business beyond delivery to include dine-in.
6. United Parcel Service, Inc. (NYSE:UPS)
Number of Billionaires: 14
Billionaire Holdings: 956,791,484
One of the Best Delivery Stocks, United Parcel Service, Inc. (NYSE:UPS) is also one of the three commercial providers that control the global small-parcel delivery market; FedEx and UPS are the two main US incumbents, and DHL Express is the market leader in Europe. In the second quarter of 2021, the firm sold off UPS Freight, its less-than-truckload division, as part of CEO Carol Tomé’s “better, not bigger” strategy. Moreover, UPS sold off Coyote, its asset-light vehicle trading business that it had purchased in 2015, in September 2023.
In 2024, the firm made $91.1 billion in total revenue, $8.9 billion in operating profit, $10.1 billion in operating cash, and returned $5.9 billion to shareholders.
United Parcel Service, Inc. (NYSE:UPS) sales for the fourth quarter of 2024 were $25.3 billion, up by 1.54% from the same period the previous year. It has also achieved an initial agreement with its biggest client to cut volume by more than half by the second half of 2026. Furthermore, it will assume complete ownership of its UPS SurePost product on January 1, 2025. The business is reorganizing its U.S. network and initiating multi-year “efficiency reimagined” projects in response to these developments to achieve a full process overhaul and save roughly $1.0 billion.
Recently, United Parcel Service, Inc. (NYSE:UPS) expanded its healthcare logistics capabilities in Europe by acquiring Frigo-Trans and the related firm BPL. The acquisitions will improve UPS Healthcare’s capacity to provide healthcare clients worldwide with end-to-end temperature-controlled solutions.
5. FedEx Corporation (NYSE:FDX)
Number of Billionaires: 15
Billionaire Holdings: 1,682,066,448
FedEx Corporation (NYSE:FDX) is ranked fifth on our list of Best Delivery Stocks. It is the biggest distributor of expedited packages worldwide, having pioneered overnight service in 1973. It made 47% of its income from its express division, 37% from ground, and 10% from freight. The rest comes from other services, such as FedEx Logistics, which offers international forwarding, and FedEx Office, which produces and ships documents. In 2016, the company expanded its footprint throughout Europe by acquiring the Dutch package transportation company TNT Express. TNT used to be the fourth-biggest package delivery service in the world.
In the second quarter of fiscal year 2025, FedEx Corporation (NYSE:FDX) spent $820 million on capital expenditures, bringing its annual capital expenditure total to $5.2 billion. The company also repurchased $1 billion worth of shares, increasing its total repurchases for the year to $2 billion, with an additional $500 million expected for the second half. The company continues to generate excellent free cash flow.
FedEx Corporation (NYSE:FDX) acquired RouteSmart Technologies, a world leader in route optimization, on February 6, 2025, to increase operational effectiveness. The two longtime partners hope the merger will go smoothly and that RouteSmart will continue to serve a range of sectors. RouteSmart will function autonomously under FedEx Dataworks, boosting its technological capabilities in logistics.
4. Shopify Inc. (NYSE:SHOP)
Number of Billionaires: 16
Billionaire Holdings: 1,543,302,895
Shopify Inc. (NYSE:SHOP) aims to be a one-stop shop for small retail enterprises, particularly those who are primarily, only, or initially focused on e-commerce. It has also made significant progress in meeting the needs of enterprise clients. The firm provides a straightforward yet powerful e-commerce platform with other relevant add-on features that come together to make a turnkey solution for SMBs. The quick climb of the business since its 2015 IPO shows a new software market that is expanding quickly and offers a viable answer. Given the financial and operational expenses associated with switching essential e-commerce platforms for clients that already have limited resources, analysts believe the company has created a wide moat.
As a result of the company’s recent string of impressive achievements, the shares responded by rising nearly 24% in the past 12 months. The Gross Merchandise Value increased by 24% in Q4 2024, despite a challenging year-over-year comparison. The firm is doing well in its offline point of sale (“POS”) segment, international and “B2B” segments, and Shopify Plus enterprise business. Shopify Inc. (NYSE:SHOP) is incredibly well-positioned for the direction the world is taking, with growth likely stronger for longer. The company has a highly scalable business model and several strong tailwinds at its back, including e-commerce, mobile commerce, social media, digital payments, seamless omnichannel, DTC, and cloud software digitization.
The company forecasts gross profit dollars to rise at a slightly slower rate in the first quarter of 2025, but revenue growth is anticipated to be in the mid-20% range year over year. After reaching 12% in the first quarter of last year, the free cash flow margin for the first quarter of this year is predicted to reach the mid-teens.
Baron Fifth Avenue Growth Fund stated the following regarding Shopify Inc. (NYSE:SHOP) in its Q4 2024 investor letter:
“Shopify Inc. (NYSE:SHOP) is a cloud-based software provider for multi-channel commerce. Shares rose 32.7% in the fourth quarter, finishing 2024 up 36.5% on strong financial results, including year-over-year revenue growth of 26% thanks to continued market share gains with gross merchandise value growth of 24%. Shopify reported continued success in its original online commerce segment while also expanding into offline, international, and business-to-business (B2B), which grew 27%, 30%, and 145%, respectively. Operating margins of 18% came in 240bps above expectations. While the company again guided for an accelerated pace of reinvestments into the business, which will limit short-term margin expansion, we believe this is the correct long-term strategy, as Shopify is taking advantage of its continuously improving product set and maturing go-to-market, in order to further expand its addressable market, targeting international merchants, offline and B2B retailers and going up market. We remain shareholders due to Shopify’s strong competitive positioning, innovative culture, and long runway for growth, as it still holds less than a 2% share of the global commerce market.”
3. DoorDash, Inc. (NASDAQ:DASH)
Number of Billionaires: 19
Billionaire Holdings: 5,024,114,424
DoorDash, Inc. (NASDAQ:DASH) holds almost 60% of the market share. It is the leading food and convenience delivery platform in North America and is listed among our Best Delivery Stocks. Uber Eats, its nearest rival, owns about 30%. After successfully entering the European and Asian markets through the acquisition of Wolt in 2022, the firm broadened its global reach and geographically diversified the business. As of December 2024, the company has about 42 million monthly active users and just processed 2.5 billion orders for the year, setting a new benchmark for marketplace network participation.
DoorDash, Inc. (NASDAQ:DASH) achieved its first full year of positive GAAP net income in 2024, a 24% year-over-year growth in revenue, approximately $60 billion in sales for local merchants in more than 30 countries, and over $18 billion in earnings for Dashers.
The firm is expanding rapidly abroad, surpassing rivals and capturing market share in each nation while preserving a positive gross profit margin and better unit economics. With improved unit economics YoY in 2024 and increasing user engagement and expenditure, DoorDash, Inc. (NASDAQ:DASH) is leading in new verticals in the U.S. DashPass and Wolt+, its membership programs, are still growing, with Wolt+ expanding more quickly than DashPass in its early years. The advertising division of the company also had a successful year, concentrating on striking a balance between the demands of advertisers and consumers while growing its global presence.
Recently, DoorDash, Inc. (NASDAQ:DASH) announced a fresh partnership with The Home Depot, allowing the DoorDash platform to offer on-demand delivery of products from the largest home improvement shop in the world. Essentials for home improvement can be delivered in as little as an hour to both work sites and homes due to the collaboration.
2. Uber Technologies, Inc. (NYSE:UBER)
Number of Billionaires: 22
Billionaire Holdings: 1,715,739,984
During the pandemic, ride-sharing behemoth Uber Technologies, Inc. (NYSE:UBER) increased its efforts to distribute food from restaurants by acquiring Postmates, a food delivery service, to strengthen its Uber Eats offering. The shares have surged up by more than 20% YTD, making it one of the Best Delivery Stocks.
The fourth-quarter performance of the firm is strong despite challenges like currency headwinds and temporary setbacks. Uber Technologies, Inc. (NYSE:UBER)’s revenue climbed primarily as a result of robust demand in Mobility and Delivery, as well as higher trip volume. Overall gross bookings grew by 18% year over year to $44.2 billion, with delivery coming in at $20.1 billion (18% growth YoY) and mobility at $22.8 billion (18% growth YoY). The combined Mobility and Delivery revenue increased 23% year over year to $10.7 billion, driving a 20% YoY rise in revenue to $12.0 billion.
Increased order volume and strengthened merchant relationships drove the growth of the Delivery segment, which helped to drive an 18% YoY rise in gross bookings. Trips climbed 18% year over year to 3.1 billion, with an average of 33 million each day. These outcomes display the company’s consistent performance and operational resilience in the face of outside obstacles.
Uber Technologies, Inc. (NYSE:UBER) is the ideal partner for autonomous vehicle businesses seeking to build AV fleets and get high utilization rates because of its position as the leading ride-hailing and delivery demand aggregator. This allows the firm to collaborate with firms like Waymo or Tesla to smoothly set up autonomous vehicles for its massive audience at a low cost, thereby strengthening its dominance in the future of delivery.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Billionaires: 40
Billionaire Holdings: 33,043,036,466
Amazon.com, Inc. (NASDAQ:AMZN) is a renowned American technology firm that sells a wide range of products, from electronics to books, on its vast e-commerce platform. The business has expanded to become the biggest online retailer in the world and a pioneer in cloud computing due to Amazon Web Services.
One important component of its company is its delivery services, which include rapid shipping choices such as Amazon Prime. It allows customers to receive their goods swiftly through same-day delivery, one-day delivery, and two-day delivery services. Thus, Amazon.com, Inc. (NASDAQ:AMZN) is the Best Delivery Stock.
Amazon.com, Inc. (NASDAQ:AMZN) reported $187.8 billion in Q4 2024, a 10% year-over-year growth in revenue, and $21.2 billion in operating income, a 61% YoY gain. Amazon Web Services boosted its annualized revenue run rate by 19% year on year, to $115 billion, due to strong demand for both generative and non-generative AI services. At $17.3 billion, advertising revenue grew 18% year over year, helping to generate a yearly run rate of $69 billion.
Amazon.com, Inc. (NASDAQ:AMZN) delivered over 9 billion units the same or next day worldwide and grew its same-day delivery sites by more than 60%, now reaching 140 metro areas. The expansion of Prime membership was driven by new fuel discounts, exclusive events, and expanded advantages like unlimited free delivery.
Polen Focus Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“Consistent with our thesis, Amazon.com, Inc. (NASDAQ:AMZN) has continued to see operating margins expand, hitting 11% in the most recent quarter after bottoming around 2% at the end of 2022. This march higher in margins stems from a mix shift towards faster-growing, higher-margin segments like Amazon Web Services (AWS) and Advertising, combined with better fulfillment efficiency in the e commerce business following significant investments in recent years. Further, speaking to its runway ahead, CEO Andy Jassy noted the company’s AI business is a “multi-billion-dollar business growing triple digits,” 3x faster than AWS did itself at the same stage in its evolution. While we trimmed our position during the quarter, Amazon remains our largest position, as we expect approximately 20% earnings growth over the next five years driven by a mix of solid organic revenue growth and continued margin expansion.
We trimmed our positions in UnitedHealth Group, Amazon, ServiceNow, and Gartner during the quarter. Amazon continues to deliver excellent results with all businesses growing robustly and profit margins expanding. When we significantly increased Amazon’s weighting in the portfolio about two years ago, its operating margins were at 2%, and we anticipated they would expand to the mid-teens over the next few years. Today, they stand at 11%, and we expect them to expand closer to the high-teen level in the next few years. The earnings growth potential from here is roughly 20% per annum based on our expectation for revenue and profit margin expansion. While this still represents excellent potential and Amazon remains our largest position, we no longer feel it merits a maximum position size.”
Overall, Amazon.com, Inc. (NASDAQ:AMZN) ranks first on our list of the 10 Best Delivery Stocks to Buy According to Billionaires. While we acknowledge the potential for AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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