Why does FedEx and UPS offer free shipping?

FedEx and UPS offer free shipping mainly as a competitive strategy to attract and retain customers in a crowded logistics market. By providing free shipping options, they incentivize businesses and consumers to choose their services over competitors. Additionally, free shipping can increase overall sales volume, as customers are more likely to complete purchases when shipping costs are eliminated. Ultimately, these companies often balance the cost of free shipping through other revenue streams and increased business efficiency.