Additional investments in speed and network capability with more than 5 million sq. ft. of new automated sortation coming on line in 2020; initial announcement of $1.4 billion investment in Pennsylvania UPS locations, creating 1,700 new jobs Expansion of UPS® Extended Hours service and weekend pickup and delivery New rural UPS Access Point Locations in Package Express Centers stores My Choice® for business international expansion to 30 countries and territories in 2020 Square Online Store adds in-platform UPS Digital Access Program offers Smart upgrade added to ups.com, simplifying cross-border shipping Continuous route optimization in next-generation ORION enables new customer services, saves miles and fuel UPS Flight Forward drone delivery service expands to University of California at San Diego hospital network under Part 107 certification UPS Flight Forward and Henry Schein To Collaborate on Drone Campus Delivery Evaluation Equity investment in innovative electric vehicle manufacturer Arrival and commitment to purchase 10,000 Arrival delivery vehicles Testing autonomous ground shuttle service in Arizona with Waymo UPS (NYSE:UPS) today continued its aggressive roll-out of innovative new services and solutions, squarely focused on the needs of its customers, especially small and medium-sized businesses. Many of the solutions work together to provide superior visibility, control, convenience and customer value versus competitor solutions that cannot leverage a fully integrated transportation network. Additionally, the company will bring online more investments designed to speed time-in-transit and increase network capacity, providing all UPS customers with additional capabilities for future success. “In 2019, UPS launched more new services and operational innovations than in any year in the company’s recent history,” said UPS Chairman and Chief Executive Officer, David Abney. “We are demonstrating further bold action in 2020 as we embrace market trends, invest for growth, partner for added reach and develop unique capabilities using next generation technologies.” A summary of UPS’s announcements on January 29, 2020 follow: Network Enhancements Support Customers’ Need for Speed and Availability UPS continues in 2020 its multi-year investment strategy to transform and grow its Smart Global Logistics Network. The company will add more than 5 million square feet of new automated sortation capacity globally during the year, beginning with the announcement of another super-hub and a total of $1.4 billion investment in new and renovated facilities in Pennsylvania, primarily to serve customers in the northeast corridor. UPS Extended Hours Coverage and Expanded Weekend Delivery New capacity, lane enhancements and more sort operations at several facilities will provide greater customer access to UPS® Extended Hours service, which now reaches 98 percent of the U.S. population, up from 85% when announced in mid-2019. The service enables shippers to process online orders later in the evening for local next day ground delivery, offering faster speed to market. Additionally, the company today announced expanded Saturday and Sunday operations, preparing for an anticipated doubling of weekend delivery volumes in 2020. Weekend network enhancements will expand residential and commercial Saturday volumes by reaching an additional 40 million U.S. consumers. UPS is the only integrated carrier offering Saturday package car pickup of all service levels and Saturday commercial delivery. The company also stated that Sunday residential deliveries and commercial pickups will be available to customers on a contract basis. 1500 Package Express Stores to become UPS Access Point Locations Providing customers with more access to UPS pickup and drop-off points, UPS also announced the addition of about 1500 Package Express Centers (PEC) locations to the UPS Access Point Network. PEC locations support the needs of consumers and SMBs through a network of independent retailers such as hardware stores and grocery stores in about 1500 cities and towns throughout the U.S. Popular UPS My Choice for business to be launched in 30 countries and territories in 2020 UPS announced plans to launch UPS My Choice® for business in 30 countries and territories in Europe, the Americas and Asia Pacific. By the end of 2020, 96% of UPS’s small package volume will be eligible to be tracked and controlled through My Choice® for business. This free visibility and tracking solution is available to eligible companies of all sizes and was designed especially for small and medium-sized businesses (SMBs). The 2020 platform release will also include updates and new features to further improve system features. Expanded Digital Services Help SMBs and e-Commerce Customers Grow Building on a previously announced Digital Access Program, UPS today announced the addition of Square Online Store to the program. Millions of merchants working with the Square offering will now have in-platform access to UPS services. UPS will be presented as a preferred shipping partner to Square Online Store subscribers. Enhanced ups.com Tools to Simplify International Shipping Keenly focused on the needs of SMBs shipping across borders, UPS announced a new International Knowledge Base on ups.com, including a guided digital wizard designed to reduce the complexities of cross-border trade and customs. According to one of many studies1, almost 70% of businesses selling online are already selling across borders, yet more than half need help to optimize their international operations. The new UPS International Knowledge Base provides a simple way to manage costs, estimate duties and taxes, and support compliance with global customs brokerage standards. Dynamic Route Optimization Takes ORION to New Levels of Functionality Creating even more operational efficiency, UPS today also announced the initial rollout of Dynamic ORION, the third generation and the most advanced routing technology ever deployed by the company. UPS drivers will now benefit from on-the-fly, dynamic route optimization, improving service and providing additional last-mile efficiencies. Dynamic ORION provides the data that powers customer solutions like UPS My Choice® and UPS My Choice® for business, giving SMBs and all business and consumer customers advance delivery notifications, estimated time of delivery and the ability to select alternative package delivery locations. UPS Drone Delivery Service Expands to University of California at San Diego UPS Flight Forward, the company’s drone subsidiary, announced service expansion to the University of California at San Diego Health. In partnership with Matternet, the program will launch in February on the UCSD health campus for transport of various medical products between health centers and labs by autonomous unmanned aerial vehicles. The drones will follow predetermined flight paths within visual line of sight under the FAA’s Part 107 rules. UPS and Henry Schein Announce Collaboration on Campus Drone Delivery UPS and Henry Schein, Inc. will explore opportunities to test a variety of drone delivery use cases. The use cases would examine unmanned aerial vehicles within business-to-business operating models. The initiative will explore the delivery of essential healthcare products by UPS Flight Forward to customers of Henry Schein, a provider of healthcare solutions to office-based dental and medical practitioners. Read more on collaboration. Equity Stake and Vehicle Purchase Commitment with Arrival, an Innovative EV Delivery Vehicle Manufacturer Adding to its leadership in fleet electrification, UPS announced an equity investment in Arrival, a UK-based innovator and industry disruptor in electric vehicles (EVs) and Advanced Driver Assistance Systems (ADAS). The investment is complemented by a commitment by UPS to purchase 10,000 custom-built EVs, with priority access to additional vehicles. UPS To Test Autonomous Ground Delivery Shuttle with Waymo Looking to future innovative uses of autonomous ground vehicles, UPS announced the company will soon commence testing with Waymo to autonomously pick up packages on a frequent basis from a The UPS Store location in Arizona, delivering to a nearby UPS sortation hub. SMB’s and consumers utilizing the test store will benefit with faster movement of their goods into and through the UPS Smart Global Logistics Network.