UPS Revenue Increases, Will It Go Same-Day Delivery?

When you see UPS investing into Same-Day Delivery, it shows that the service has moved beyond just being a trend. It has become a legitimate staple service that can swing sales toward your business. This is what UPS did at the beginning of this year. UPS conducted a study on same-day delivery and led a $28 million funding round for start-up Deliv. The carrier also became a minority stakeholder in Deliv and sat in on board meetings as well. It's clear that UPS is seeking innovative ways to increase sales.

The Washington Post recently released an article detailing UPS’s second-quarter revenue results. Sales slightly improved within its' domestic and international package divisions. The report stated that the carrier's revenue increased to $14.63 billion, which is up from $14.1 billion. Analysts surveyed by Zacks Investment Research forecasted growth for the quarter to hit $14.6 billion in revenue. The US domestic package unit went up 4%, along with an average daily package volume up 2.5%.

2nd quarter figures went up 1.1% in the international package division and 3.9% for daily export packages. Also, for the three months that ended June 30, UPS earned $1.27 billion. This equated to being higher in comparison to $1.23 billion for the same period last year. The increases may not have been what UPS would have anticipated, yet the numbers are positive, especially when you have FedEx and the US Postal Service to contend with.

Along with FedEx and the U.S. Postal Service, now UPS may have to concern itself with Amazon. The e-retail leader has now leased 40 cargo planes from Boeing and Atlas Air for the purpose of creating an air cargo network. Amazon does state that it isn't planing to build its' own delivery service and is only looking to work closer with package-delivery companies like the UPS, USPS and FedEx.

Amazon may not have an edge in carrier package delivery services, but it does with establishing same-day delivery. For Prime members, the same-day service is free. Amazon has same-day delivery operating in major US cities, such as San Diego, San Francisco, Seattle, Dallas, New York, Philadelphia, Chicago, Baltimore, Boston, Atlanta, Richmond, Orlando, and more. The e-retail giant has a total of 27 markets that offer same-day delivery and appears to have its' sights on providing it nationwide.

A Same-Day Courier like A-1 Express can help UPS develop sound same-day logistic solutions throughout the US. The Philadelphia Courier takes the service areas, product volume and more into account in order to deliver at the right price. As a result, companies can experience gains in revenue and new customers due to trying their same-day delivery options.

Reference: 7.29.16, www.washingtonpost.com, Associated Press, UPS 2Q revenue improves on strength in US, abroad