United Parcel Service Inc. is exploring same day options. This is the delivery format used by gig-economic players. As the pandemic has accelerated the transition to e-commerce.
“Today we don’t have products on the same day. So we’re watching,” said Carol Tomei, chief executive officer. It said in response to questions about Wednesday’s investor webcast. “We don’t have all of this. But we have a team of people who are watching this.”
She said the company was testing the idea and gave no other details. A UPS spokesperson said the company did not comment on its pilot program. The idea, born of e-commerce acceleration, has driven retailers to add roadside and same-day delivery options.
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Amazon.com Inc., one of UPS̵7; largest customers, and Instacart Inc., is one of the same day delivery providers. Target Corp. owns Shipt, which delivers same-day delivery from stores and from networks such as CVS. and Petco. Food delivery services such as DoorDash Inc. and Uber Technologies Inc. expanded into grocery stores during the pandemic. Although the profits are very difficult
UPS and competitors like FedEx Corp. have been operating overnight for a long time. But they generally don’t ship the parcel the same day it was received. Both companies have begun accepting parcels from some stores in the evening and delivering the next day. FedEx offers same day service in limited markets. It has also tested robots that can deliver medicines, pizzas and other items. to the consumer’s home
|UPS||United Parcel Service, Inc.||201.06||-8.70||-4.15%|
|UBER||Uber Technologies, Inc.||49.14||-0.74||-1.48%|
UPS’s technology infrastructure for ordering and tracking packages is well positioned to track delivery patterns. Although it’s unlikely the company will use already-popular services such as grocery or food delivery, said Jeffrey Kauffman, transportation and logistics analyst for Vertical, LLC Research Partners.
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“I guess ecommerce will continue to grow this market,” Kauffman said of the same-day marketplace for services. “It’s a market worth checking out.”
UPS on Wednesday laid out its financial targets, saying it expects revenue to rise to about $98 billion to $102 billion in 2023, but is targeting margins that are lower than Wall Street’s forecasts for 2020. UPS is profitable. From operations $7.68 billion on revenue of $84.63 billion.
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UPS shares fell 4% in Wednesday trading. The stock has doubled over the past 12 months.
Mr. Tomé, who took over as CEO a year ago. have used a strategy to choose a package that is more acceptable to the company including raising prices and enforcing quantity restrictions.
UPS said Wednesday it was counting on small package deliveries and among small and medium-sized businesses to drive growth.