Recently, UPS made news by acquiring Coyote Logistics for a reported $1.8 billion. Coyote Logistics is a full-scale service provider that offers transportation and logistics services to more than 12,000 customers across a wide range of industries. This acquisition aims to strengthen UPS’ business while eliminating a competitor. However, there are always specific reasons why a multinational will acquire another for more than $1 billion.
United Parcel Service Inc.’s tie up with TNT Express NV was blocked by the European Union two years ago. Now, the world’s biggest package delivery company wants the EU to frustrate FedEx Corp.’s bid to run off with the Dutch rival it once courted.
It’s lobbying hard against FedEx’s $4.8 billion TNT bid, said people familiar with the EU’s merger probe, who asked not to be named because the review is private. While such activity is common, they said UPS’s pending appeal over the vetoed deal is strengthening its hand. Taking a weaker stance with FedEx could damage regulators’ case in court.
This is what the inside of UPS’ main health-care hub in Louisville, Kentucky, looks like: 1.4 million square feet of temperature-controlled space occupying 40 acres down the street from the shipping giant’s WorldPort facility. It’s one of 50 specially designed warehouses catering to shipments of medical drugs, surgical devices, even human material such as blood and stool samples.
New York City resident Alex Bell has reportedly filed two new lawsuits against UPS that accuse Big Brown’s trucks of repeatedly blocking Manhattan bike lanes by double-parking in them during deliveries.
During most of the year, package delivery companies FedEx Corporation (NYSE:FDX) and United Parcel Service (NYSE:UPS) attract little attention from the public, but that all changes come the holiday season if they don’t deliver packages on time. However, investors should also focus on the holiday period because dealing with peak demand is probably the biggest variable in both companies’ earnings. Let’s look at what both companies are doing to prepare for peak demand during the upcoming holiday season.