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Brown Cafe UPS Forum
UPS Union Issues
Surepost causing routes to be cut
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<blockquote data-quote="worldwide" data-source="post: 864372" data-attributes="member: 2193"><p>The rate UPS pays the USPS for this service are based on Parcel Select rates. A 1-lb and 2-lb Parcel Select rate is $1.85. You really think UPS ground residential and Fedex Home Delivery can compete with that rate?</p><p></p><p>This is the reality of the economy. Companies are not willing to pay Fedex Home Delivery and UPS Ground residential rates and the various surcharges. Fedex SmartPost is growing like crazy and driving the ground growth at the company--read any of their quarterly reports or listen to their earnings announcments. It is reality. You can either accept the fact that UPS needs to offer a similar service that competes on rates or let Fedex take this volume and the jobs that go with it. It is reality.</p><p></p><p>Surepost packages are picked up, sorted and delivered by UPS Teamster employees. Fedex subcontracts out most of the pickup from the customer and delivery to the post office. They have a lower cost structure than UPS. It is reality.</p><p></p><p>Waiting for the USPS to implode while Fedex Smart Post grows and grows is not a smart business decision. The USPS will always exist--maybe some offices will close and maybe Saturday delivery will go away but the USPS will always exist.</p><p></p><p>You can choose to accept reality or ignore it, but it does not change the facts.</p></blockquote><p></p>
[QUOTE="worldwide, post: 864372, member: 2193"] The rate UPS pays the USPS for this service are based on Parcel Select rates. A 1-lb and 2-lb Parcel Select rate is $1.85. You really think UPS ground residential and Fedex Home Delivery can compete with that rate? This is the reality of the economy. Companies are not willing to pay Fedex Home Delivery and UPS Ground residential rates and the various surcharges. Fedex SmartPost is growing like crazy and driving the ground growth at the company--read any of their quarterly reports or listen to their earnings announcments. It is reality. You can either accept the fact that UPS needs to offer a similar service that competes on rates or let Fedex take this volume and the jobs that go with it. It is reality. Surepost packages are picked up, sorted and delivered by UPS Teamster employees. Fedex subcontracts out most of the pickup from the customer and delivery to the post office. They have a lower cost structure than UPS. It is reality. Waiting for the USPS to implode while Fedex Smart Post grows and grows is not a smart business decision. The USPS will always exist--maybe some offices will close and maybe Saturday delivery will go away but the USPS will always exist. You can choose to accept reality or ignore it, but it does not change the facts. [/QUOTE]
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