UPS (UPS), FedEx (FDX) Win Licenses for Extended Service in China

United Parcel Service (NYSE: UPS) and FedEx (NYSE: FDX) have won licenses in China to extend domestic services in the country without needing to take on joint-venture partners.

Reuters noted earlier Thursday that the two logistics companies have been awaiting approval for independently deliver business-to-consumer parcels since 2009.

The Chinese delivery market could be worth around $46 billion next year, largely due to an increase in e-commerce sales.

One spokesperson with UPS commented, We now have 33 licenses ... The government just approved them in May," Lane said, referring to UPS's latest 14 licenses for cities including Beijing, Wuhan and Hefei ... We're really looking at developing those capabilities in those 33 cities, expanding our investment ... But we haven't developed a concrete plan yet in terms of where we want to go beyond those 33 cities ... We have been working closely with the relevant authorities to obtain the express delivery services permits for our business. So far we have received all the permits for our domestic business.

Competitors to UPS and FedEx in China include state-backed China Post, as well as private companies like Shentong Express and S.F. Express.

Shares of UPS and FedEx are flat Thursday morning.

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