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UPS News

UPS goes back to business in $20 billion automation push – Reuters

United Parcel Service Inc is bolstering services to boost shipments between businesses as part of a $20 billion push to automate its network and offset lower-profit home deliveries from Amazon.com and other online retailers.

The world’s biggest package delivery firm’s embrace of expensive “last-mile” home shipments of everything from clothes to car tires has squeezed margins as it competes with FedEx Corp, which takes fewer of those pricey deliveries.

UPS shares fell 1.7 percent to $121.21 in midday trade after executives on Thursday boosted long-term earnings targets but stopped short of saying they would take fewer home deliveries.

 

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UPS Press Release

UPS Transformation And Enhanced Business Strategy To Boost Future Earnings

UPS Hosts Transformation Conference in New York on September 13

UPS (NYSE:UPS) today quantified the financial benefits of its transformation initiatives based on the company’s outlook for revenue quality improvement and operating cost reductions between 2018 and 2022. The company expects these actions to result in an incremental increase to adjusted earnings per share in the range of $1.00 to $1.20 by 2022.

“Transformation will lift our earnings, as we generate higher-quality revenue and use technology to increase operating efficiency and enhance customer service,” said David Abney, chairman and chief executive officer. “UPS is transforming from a position of strength. We are implementing an enterprise-wide transformation that will enable and accelerate our enhanced business strategy.”

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Industry News UPS News

Should UPS be concerned about Amazon’s order of 20,000 vans? – Louisville Business First

Winter is coming, logistics world.

Last week brought the news that Amazon.com Inc. (Nasdaq: AMZN) had ordered 20,000 delivery vans from Mercedes-Benz. CNN reports that this deal is a big leap from the Seattle-based e-commerce company’s first order of 5,000 vans. Amazon will lease these to third-party partners, who will operate them for last-mile delivery — basically, getting packages from a shipping hub to your house.

This is yet another step in Amazon’s plans to build its own delivery service, and it’s worth watching to see how it will affect United Parcel Service Inc. (NYSE: UPS). Amazon also is allowing allow people to use their personal vehicles for delivery in some cities.

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UPS News

Asian shoppers dissatisfied with online shopping experience — UPS global survey – BusinessWorld

Customers in Asia are less satisfied with online shopping compared to those in other regions, a study organized by logistics company United Parcel Service (UPS) shows.

“UPS Pulse of the Online Shopper,” which surveyed more than 18,000 online shoppers around the world (3,200 of which are from China, Hong Kong and Japan), took a closer look at the shopping habits of online customers from pre-purchase to post-delivery.

The study found 57% of Asian shoppers surveyed were satisfied with their online shopping experience, compared to other shoppers in the United States (85% were satisfied), Europe (81%), Canada (77%), Mexico (87%) and Brazil (88%).

In an interview with BusinessWorld, UPS Philippines Managing Director Chris J. Buono said for Filipinos the online shopping experience is influenced by factors such as the speed of delivery, access to bank accounts and affinity for mall shoppin

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Industry News

FedEx to expand ground operations to six days a week to meet growing e-commerce demand – Marketwatch

Parcel delivery company FedEx Corp. said Wednesday it is expanding its FedEx Ground U.S. operations to six days a week to meet growing e-commerce demand and record volume that’s expected this holiday season and beyond. The company said it has been investing for years in its facilities and automation and other technology to meet the growing demand for online deliveries.