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

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.
 

worldwide

Well-Known Member
You heard it here first. Dynamic pricing. Supply and demand.

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.
 

Bottom rung

Well-Known 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.
 
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