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United Parcel Service Inc. announced several major investments including $1.4 billion to build a new super hub in Harrisburg, Pennsylvania, automate older facilities nationwide, and purchase thousands of electric vehicles.
United Parcel Service Inc on Wednesday said it is ordering 10,000 electric delivery trucks from the UK-based Arrival Ltd and teaming with self-driving startup Waymo as package carriers work to cut costs and tail pipe pollution. The UPS/Arrival partnership includes a minority investment from the world's biggest package delivery firm and lands four months after customer-turned-rival Amazon.com Inc ordered 100,000 electric vans from Rivian, a Michigan startup partially funded by the world's largest online retailer. Its six-month test with Waymo, the self-driving unit of Google parent Alphabet Inc, starts next month.
UPS Saturday and Sunday delivery volume will significantly expand in 2020 as network changes add more sortation and delivery capacity for weekend services. UPS also offers economical Sunday delivery, helping merchants reach consumers in the majority of the U.S. with faster delivery. UPS (UPS) in 2020 will deliver more packages on more days of the week so merchants can get products to their customers sooner.
UPS (UPS) today said its venture capital arm, UPS Ventures, has completed a minority investment in Arrival, which makes electric vehicle (EV) platforms and purpose-built vehicles that offer a highly competitive value proposition when compared with both traditional internal combustion engine vehicles, as well as existing EVs. Along with the investment in Arrival, UPS also announced a commitment to purchase 10,000 electric vehicles to be built for UPS with priority access to purchase additional electric vehicles.
Collaboration enhances UPS’s solutions for busy consumers and small- and medium-sized businesses (SMBs) to pickup and ship packages in rural areas underserved in the e-commerce era. Small-town businesses can offer new services while boosting foot traffic, while UPS adds delivery services at pre-existing pickup locations. Expansion will increase UPS Access Point locations to more than 22,000 in the U.S. in 2020 and more than 41,000 globally.
UPS (UPS) today said it has enhanced its award-winning On-Road Integrated Optimization and Navigation (ORION) platform with Dynamic Optimization, which recalculates individual package delivery routes throughout the day as traffic conditions, pickup commitments and delivery orders change. ORION, first deployed in 2012, provides drivers with the most efficient route for deliveries and pickups on more than 66,000 routes in the United States, Canada and Europe. In 2019, UPS added UPSNav to the ORION route guidance platform.
UPS (UPS) today unveiled a new collaboration with Square Inc. (SQ) that offers turnkey UPS® shipping options integrated into the Square Online Store, a service that allows small and medium sized sellers to grow their business with a professional e-commerce website and integrated tools. This solution provides Square’s e-commerce customers with UPS shipping connectivity, a welcome addition to the San Francisco-based company’s suite of services that empower businesses with everything from payment solutions to accessing financing.
UPS (UPS) and Henry Schein, Inc. (HSIC) today announced an agreement to explore and test a variety of drone delivery use cases. The use cases would examine unmanned aerial vehicles within business-to-business operating models. The initiative to explore drone deliveries will begin in 2020 and will focus on testing the transport of essential healthcare products by UPS to customers of Henry Schein, a provider of healthcare solutions to office-based dental and medical practitioners.
UPS (UPS) and self-driving technology company Waymo today announced a first-of-a-kind partnership to pilot autonomous vehicle package pickup in the Metro Phoenix area. Starting in the coming weeks, Waymo’s Chrysler Pacifica minivans will shuttle packages from The UPS Store locations to a local UPS sorting facility for processing.
ATLANTA, Jan. 29, 2020 -- Drone program launches February 2020 in partnership with Matternet and builds on UPS Healthcare & Life Sciences strategy to support U.S. hospital.
Set to take effect in phases throughout 2020, it will help simplify international shipping by guiding customers through the process and by providing proactive insight into total landed costs, including duties and taxes. This will help shippers notify their customers of any additional costs before their package ships. Shippers will benefit from a more intuitive experience when generating international shipments with helpful information related to cross-border trade and paperwork managed in a streamlined process.
Global merchants can now exercise more control over their shipments and deliveries as UPS (UPS) today announced plans to launch UPS My Choice® for business in 30 countries and territories in Europe, the Americas and Asia Pacific. By the end of 2020, 96 percent of UPS’s global small package volume will be eligible to be tracked and controlled through My Choice® for business.
Additionally, the company will bring online more investments designed to speed time-in-transit and increase network capacity, providing all UPS customers with additional capabilities for future success. “In 2019, UPS launched more new services and operational innovations than in any year in the company’s recent history,” said UPS Chairman and Chief Executive Officer, David Abney.
The world's biggest online retailer pioneered seven-day delivery in 2013, in partnership with the U.S. Postal Service (USPS), and is now spending billions of dollars to speed up its free shipping. UPS added Sunday to its weekend services at the start of this year, following FedEx Corp, which did the same late last year. "E-commerce spikes on the weekends, and retailers want those orders delivered sooner," UPS Chief Marketing Officer Kevin Warren said in a statement ahead of UPS and Amazon's quarterly reports on Thursday.
United Parcel Service (NYSE: UPS ) announces its next round of earnings this Thursday, January 30. Here is Benzinga's everything-that-matters guide for the Q4 earnings announcement. Earnings and Revenue ...
For the third consecutive year, UPS (UPS) will bring online substantial processing capacity globally at 20 new or remodeled, highly automated, data-driven facilities in 2020. Innovative technology provides increased efficiency and additional flexibility for routing packages, with visibility tools and leading edge analytics optimizing volume and processing capacity alignment across UPS’s smart global logistics network. UPS today announced a commitment of approximately $1.4 billion to significant facility enhancements in Pennsylvania, as part of the company’s major capacity expansions in 2020.
Representatives from Louisville Metro Government, United Parcel Service Inc., the University of Louisville and Jefferson Community & Technical College convened at UPS Worldport for the signing of the document.
(Bloomberg) -- FedEx Corp. founder Fred Smith, nearing the end of a legendary career, says he’s going to prove himself right one more time.Best known for disrupting the parcel delivery business by introducing overnight service, Smith is now getting disrupted himself by e-commerce and the rise of online shopping. He’s taking a pounding from Wall Street for FedEx’s disappointing performance, while analysts praise archrival United Parcel Service Inc. for reversing a decline in profit margins.Smith is frustrated, defiant, indignant by turn. But most of all he’s confident — as he asserted more than 20 times during a two-hour interview in which he laid out his strategy to master e-commerce and become the fastest, most cost-efficient ground courier. He’s drawing the battle lines, positioning FedEx as a kind of anti-Amazon ally for big-box retailers and pledging that his strategy will soon enable FedEx to overtake UPS.“I will say to you unequivocally: In the next two or three years, I’m firmly of the belief we will pass UPS in terms of size and be the largest by-revenue transportation and logistics” company, Smith said. UPS reports its 2019 financial results Thursday.The 75-year-old founder and chief executive officer is the first to admit his plans haven’t gone smoothly. FedEx’s international business has been plagued by setbacks, including a 2017 cyber attack and a costly air-fleet expansion that was undercut by Donald Trump’s trade wars. Back home, a falling out with Amazon.com Inc. drained $900 million off the courier’s top line.FedEx investors have paid the price. After the shares of both couriers tumbled in 2018, UPS shares gained 20% last year, while FedEx slumped 6.3%. A string of earnings disappointments have driven down FedEx by 43% in two years. Shares rose less than 1% to $149.14 at 11:06 a.m. Tuesday in New York trading.But Smith is nothing if not battle-hardened. The Yale-educated former Marine has been shot at in the jungles of Vietnam and almost bankrupted his family fortune to create an unprecedented express delivery market. He built FedEx while overcoming the 1970s Arab oil embargo, two Middle East wars that stalled growth, as well as the 2008 economic meltdown.“I’ve been through this before, getting smacked when bad things happened in the middle of building things,” Smith said in an interview late last month. “I mean, this is kind of the story of my life.”As the CEO enters his 47th year at the helm, he’s driven more than ever to get his vision across to investors and bring FedEx back on solid footing before stepping down -- a prospect he’s now contemplating.While acknowledging that the company isn’t making as much money as he’d like, Smith promises by mid-year it will be clear that his plan is working.The two biggest parcel delivery companies in North America are forging dramatically different paths as they adjust their business models to the tsunami of e-commerce. Their success will help decide the market war between Amazon and Walmart Inc., and perhaps the future course of the entire retail industry.While UPS is deepening its ties to Amazon, FedEx has broken away, instead working to strengthen its relationship with brick-and-mortar retailers to help them win at e-commerce. While UPS wants to stay neutral with customers, Smith is banking on an us-against-Amazon mentality.“I have this completely iconoclastic — it’s not a belief, it’s a certainty — they are going to disrupt Amazon,” Smith said of traditional retailers. “We came to this fork in the road that we had to ally with one side or the other. They want to become more adept in the e-commerce space, and we intend to allow them to do that.”Another difference is that UPS is relying more on the U.S. Postal Service, especially for Sunday deliveries, while FedEx is taking back about 2 million packages a day that it had been handing off to the government agency for final delivery. With the increased volume, FedEx can better leverage its more than 600 sorting and delivery facilities around the U.S. to help retailers with shipments from stores to residences.Skeptical analysts like Morgan Stanley’s Ravi Shanker aren’t sure that ramping up volume in short-haul deliveries will produce the kind of returns Smith seeks.“He’s trying to put as many boxes through his network as he possibly can and it’s hard to debate that approach as long as he can demonstrate viable returns and improving profitability,” Shanker said. “I think the jury is going to be out until they actually deliver that.”Crown JewelThe push to catch UPS has come at a cost. Since 1995, FedEx’s capital spending has been 9% of sales on average, compared with less than 6% at UPS, according to data compiled by Bloomberg. In the past decade, FedEx’s average return on invested capital has been 13%, well below its rival’s 24%.FedEx’s ground unit — started two decades ago to counter UPS’s venture into overnight service — has become the crown jewel of Smith’s company. Revenue almost tripled in the last decade, compared with a 75% increase at its Express air cargo business. Profit margins averaged 15% for ground compared with 5.6% for Express. The unit has gained U.S. market share in 19 of the last 20 years, Smith said.A sharpened ground service is a crucial part of FedEx’s strategy in teaming with traditional retailers. To compete on e-commerce, big retailers like Wal-Mart, Target Corp. and Dick’s Sporting Goods Inc. have improved technology to track merchandise, and to pick, pack and ship from local stores.Retailers’ thousands of neighborhood stores, coupled with FedEx’s network of delivery facilities, should provide an edge over Amazon, which has many fewer facilities and must use aircraft to fly in goods not on hand at fulfillment centers.“We already know how to do this,” said Smith, who notes that more than 90% of the U.S. population is within five miles of a FedEx facility. “That’s why we say with such confidence that we can do it and be the low-cost, high-service provider.”The CEO sees FedEx moving beyond its rough patch this year as the swell of spending subsides and growth makes up for the lost Amazon business. FedEx predicts profit margins in its ground unit will rebound into the teens by the quarter ending in May, after they dropped to 9% for the six months through November.Smith’s confidence isn’t shaken by the recent avalanche of criticism, in part because he says analysts and competitors don’t have all the internal data that he has to show why his plan will work.“Take your best shot,” he said of his critics. “We’ll see who wins in the end here.”To contact the author of this story: Thomas Black in Dallas at firstname.lastname@example.orgTo contact the editor responsible for this story: Susan Warren at email@example.com, Brendan CaseFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
For the second year, The UPS Store, Inc. and Inc. Magazine are joining forces to find the country’s most knowledgeable small business owners through an exciting national business competition. Entrepreneurs and innovators from across the country are invited to enter the second annual Small Biz Challenge, a contest that offers eligible entrepreneurs a chance to win up to $25,000 and an editorial feature in an upcoming issue of Inc. Magazine and Inc.com.
Commercial vehicles are going electric through launches of demonstration fleets of varying sizes testing the viability of running on battery power or hydrogen fuel cells instead of diesel. Smaller commercial vehicles, like pickup and delivery vans, get the most interest because their electric propulsion systems require fewer batteries that take up space for cargo. According to the U.S. Department of Transportation, 37% of freight moved less than 100 miles in 2015.
When United Parcel Service, Inc. (NYSE: UPS) last October made its first medical delivery by drone, it may have finally begun what drone advocates have been touting for a decade — a new era when unmanned flights may become just as normal as those in aircraft with pilots. "We estimate the military will remain the leading driver of technology and innovation in the next five years, but the emergence of commercial applications (drone delivery) and select industrial applications will foster a broader ecosystem that we believe will eventually drive significant capital allocation and growth," wrote Canaccord Genuity analyst Ken Herbert in a recent note on the burgeoning industry. The drone, made by privately held Matternet, made a medical delivery in North Carolina.
UPS' fourth-quarter 2019 performance is likely to have been buoyed by the U.S. Domestic Package segment owing to strong e-commerce growth.