UPS rates will change for the holidays—but not to Uber-like 'surge' pricing

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UPS rates will change for the holidays—but not to Uber-like 'surge' pricing - Fortune

Imitating the car-hailing app isn’t in the cards for big shippers, despite the challenge of holiday spikes.

Last January, following two years of struggling with booming holiday ecommerce, express shipper UPS announced that it would implement surge pricing during the holiday season. Analysts and press speculated this could mean something Uber-like, with shipping prices changing day to day or even hour to hour. In mid-August, the UPS rate guide confirmed that “holiday season changes” would impact pricing for many of its services.

But despite early speculation, those changes are unlikely to mimic Uber’s transparent and dynamic pricing. Instead, a UPS spokesperson said changes will be centered on deals with larger customers, who will “establish forecasts, promotions, and thresholds” in cooperation with UPS. Individuals doing their online holiday shopping are unlikely to notice price swings.
 
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