UPS Plan to Tweak Peak Prices May Echo Uber-Like Fare Surges

Discussion in 'The Latest UPS Headlines' started by cheryl, Jan 24, 2015.

  1. cheryl

    cheryl I started this. Staff Member

    UPS Plan to Tweak Peak Prices May Echo Uber-Like Fare Surges - Bloomberg

    Getting the latest iPad delivered to your home next holiday season may cost more if United Parcel Service Inc. imposes surge pricing akin to car-booking company Uber Technologies Inc., which hikes fares as demand soars.

    UPS will “implement new pricing strategies during peak season,” David Abney, chief executive officer of the world’s biggest package delivery company said today. After hiring 95,000 seasonal workers to address demand spikes, the Atlanta-based company found it had more workers than package volume on some days during the recent shopping period.
  2. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    You heard it here first. Dynamic pricing. Supply and demand.
    • Agree Agree x 1
    • Winner Winner x 1
    • List
  3. Packmule

    Packmule Well-Known Member

    Yes, we did!
  4. worldwide

    worldwide Active Member

    UPS has been talking about doing this since early 2014 after the peak 2013 fiasco. It was mentioned in a few of the earnings calls last year as an option but it does not look like UPS pulled the trigger on this during peak 2014. UPS is clearly sending the message early that peak season "surge" pricing will happen in 2015. By sending the message now, it also alerts FedEx so they will implement similar rules as they don't want to be slammed with excess volume. As you said, supply & demand should dictate the pricing that is offered.
  5. Bottom rung

    Bottom rung Active Member

    Where were all these extra drivers and sorters? The worst part is that there are local shipping companies who won't charge extra and take all of our small accounts.