UPS Basic service

Discussion in 'UPS Discussions' started by Teamdriver, Nov 12, 2008.

  1. Teamdriver

    Teamdriver New Member

    What's the deal with UPS basic service? UPS picks up the packages sorts them and takes them to the destination city and then gives them to the post office to deliver. Sounds like delivery drivers may soon become a thing of the past. This can not be right. Someone tell me more about UPS basic.
  2. beentheredonethat

    beentheredonethat Well-Known Member

    There's been talks inthe past about Basic. Here's what it is.
    Basic is a no frills ground service that has 3 components of it.
    The customer signs up for this contract service and UPS only offers it to our larger customers. Normally the default max weight for Basic is 5 lbs, but we have some customers that go til 10 lbs for a Basic pkg. This weight limit is more a UPS guideline, due to the USPS cost increase significantly past 5 lbs. For the pkgs that fall under the weight guidelines and are to the continental US there are 3 options.
    1. USPS PO Boxes, regardless of destination zip, any pkgs addressed to the USPS gets delv to the USPS for delivery.
    2. Urban zips - roughly 1/2 the US zips are listed as urban and we deliver the basic pkg to the end customer. looks pretty much like a ground pkg and treated as one, only issue is only 1 delv attempt, no insurance, shipper release.
    3. Rural Zips - roughly 1/2 the US zips are rural and get delivered to the USPS and then they delv the final leg to the end consignee. Note even though it's 1/2 the zips, it's roughly 1/4 of the population\pkgs.

    There are some that say Basic is outsourcing and should be eliminated. However, with that kind of thinking, even if they get what they want, we'll lose even more customers, and not gain new ones with that kind of thinking. There are some customers that dont' want all the frills of UPS service and don't need the ground transit time speed. (Basic has a delay of 1 -2 days vs UPS ground). Those customers have other choices including FDX Smartpost. If we don't offer the service, then those customers will use a carrier that will. Then we won't pickup, transport, sort, load and deliver the pkg to the consignee and for 25% of the pkgs delv to the USPS.

    I think the majority of us on the boards think that more volume is a good thing for all of us UPSers.
  3. finaddict

    finaddict Member

    Beenthere... Bravo...Account exec?
  4. upsdude

    upsdude Well-Known Member

    I deliver approx 10 "Basic" packages a day. Quick and easy stops.
  5. trplnkl

    trplnkl 555

    Why could this not have been asked in the other thread about Basic packages?
  6. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    The only problem I have with the Basic service is there have been many times when I have driven past the address which the pkg was addressed to only to go to the PO and deliver the pkg so that their carrier can deliver it the following day to the address that I just drove by.

    The one thing that was not mentioned above was that the shipper who agrees to use Basic service cannot file a claim or initiate a DFU on that shipment.
  7. upsdude

    upsdude Well-Known Member

    Actually, I had a DFU for a Basic a couple weeks ago, same for a coworker. I'm not sure how that will shake out.
  8. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    We were told that shippers could not file claims--I apologize if this information is incorrect.
  9. upsdude

    upsdude Well-Known Member

    No apology needed, we were told the same thing. If UPS is going to pay claims, now what?

    HEFFERNAN Huge Member


    Are all driver release packages DFU-proof ?

    I have had to leave them at some very seedy areas and always wondered that.
  11. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    No, but we were told that shippers who used Basic could not file claims in exchange for a reduced rate for shipping.
  12. Mike Hawk

    Mike Hawk New Member

    The idea was to use basic to get USPS customers on board with UPS, if all they had was ground they would still be with usps or FDX. Look at it this way, we get 5% more volume, 1 of that 5% will be subcontracted to the Post Office. (I don't know the numbers but that is the idea)
  13. upsdude

    upsdude Well-Known Member

    I get concerned with leaving someone’s new supply of personal checks at the door of their apartment. I thought identity theft was a hot topic.
  14. barnyard

    barnyard KTM rider Staff Member

    I don't. If it were that big a deal, they would not ship basic. The shippers no the risk.

    The one's that surprise me are the shippers that send out shipper release packages, because it is the cheapest UPS service, but do not understand what that means.

    I pick up from a shipper that ships tractor parts. All of them are shipper release. I asked about it and they said, "They are businesses, there are people there."


  15. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Actually, that may not be a bad business decision, if the shipper is willing to gamble that a % of his shipments will not reach their destination and he will not be able to file a claim on those shipments.

    On the flip side, I have one consignee (New York State Attorney General) who receives all of their supplies from Albany A8--Adult Signature Required Minimum Age 21. So, in addition to paying for a signature they are also paying to ensure that the recipient is over 21. I am talking about reams of paper and other office supplies. And yet Albany wonders why NYS is broke!
  16. cosmo1

    cosmo1 Now, a low life jack wagon, and still loving it.

    You're still getting paid by the hour.
  17. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    No :censored2::censored2::censored2::censored2:, Sherlock!!
  18. H_E_Pennypacker

    H_E_Pennypacker Large Member

    It was designed to help us compete in the under 5 pound package business. Once you get under 5 pounds our rates become very non-competitive; especially in comparison to the USPS. FedEx [and DHL] also offer similar services (ie: SmartPost)

    "You shouldn't have to press 7 for swahili"
  19. Coldworld

    Coldworld Taking it all back.....

    ups is taking a large amount of volume from the post office with this service...period. Some say that companies like target and others were already using ups ground, true but many of these companies were using BOTH ups is getting it all. There are so many basic accounts that ups never had that we are delivering from the post office that its hard to remember them all. I agree with what others are saying on here about a 50 lb basic box but much of this volume is being delivered by ups and all processed by ups folks. Today the post office announced over 2 billion dollars in the red, they said that their bulk mail was down, but ups taking accounts from them with basic is probably some of it also. Some of these accounts are million dollar accounts. There will probably be a day when the post office and ups have similar pricing in the under 5 lb box limit. The post office will for sure raise their prices next year on packages....this will probably pi$$ OFF THE EBAYERS.
  20. BigBrownSanta

    BigBrownSanta New Member

    My take on the basic service is that it's the easiest 40 packages I deliver each day. I just wish there was a way to have the packages containerized in forever bags so that I could just make 3 or 4 scans rather than 40.

    Also, the shipper gets reduced rates to ship these packages. They don't pay to have us deliver these packages to 40 different addresses. Those 40 low-revenue packages probably generate the same revenue as delivering 10 regular ground pieces (just guessing).

    Another benefit is, the receiver of the package has the abilty to track their package until it gets to the post office (I think). That in itself is a good reason for a shipper to use the basic service.

    I know that I have ordered things off the internet and the only option available was the post office. You never know when your order is shipped and you never know where it's at once it's been shipped. I have had things not show up 30 days after the estimated delivery date. Called and had my credit card recredited, and 2 months later the item shows up in my mailbox.