It’s a good thing to see your revenue up, even it isn’t what you expected. The Washington Post discussed how UPS’s second-quarter revenue slightly improved its’ domestic and international package divisions. The package and delivery carrier’s revenue increased to $14.63 billion, up from $14.1 billion. Analysts surveyed by Zacks Investment Research expected $14.6 billion in revenue. The US domestic package unit went up 4%,along with average daily package volume up 2.5%.
The article also mentioned regarding the 2nd quarter figures that revenue rose 1.1% in the international package division and 3.9% for daily export packages. For the three months ended June 30, UPS earned $1.27 billion, which is higher in comparison to $1.23 billion the same period last year. With all of the increasing competition, this appears to be a good sign, especially as the holiday season draws near.
FedEx and the U.S. Postal Service isn’t the only companies that UPS has to be concerned about in regards to the package and delivery industry. Amazon is making some strategies moves of its’ own. The article mentioned how the e-retailer leader has leased 40 cargo planes from Boeing and Atlas Air for the purpose of creating an air cargo network. Yet, Amazon stated it doesn’t plan to build its own delivery service and is only looking to work closer with package-delivery services like the USPS, FedEx and UPS.
Even if Amazon isn’t creating its’ own delivery service, it has clearly vested itself into Same-Day Delivery throughout the US. Amazon offers free same-day delivery service for Prime members in major US cities, including San Francisco, San Diego, Seattle, Dallas, New York, Philadelphia, Chicago, Boston, Atlanta, Richmond, Orlando, and more. The e-retail giant has the service in 27 markets, and more than likely, will become nationwide. More cities could be added before the holiday season begins as well.
As Amazon may be converging on UPS’ turf, the carrier giant laying some ground work of its’ own with same-day delivery. Earlier this year, UPS conducted a study on same-day delivery and led a $28 million funding round for start-up fast delivery company Deliv. The article didn’t mention the investment size, yet it did state that UPS was taking a minority stake in Deliv and sit in on board meetings. UPS took steps toward learning more about on-demand services, showing that there is some interest in being able to adapt to today’s market. If Amazon and others are investing in same-day delivery, UPS sees reason to do it also.
UPS could see the need to step into other markets and offer additional shipping options. As today’s delivery industry evolves, many companies are turning to a Same-Day Courier like AQuickDelivery to create same-day logistic solutions for them. The Atlanta Courier has an array of courier expertise and the latest in technology for on-demand services, whether in Georgia or nationwide. Either way, UPS and Amazon prove that businesses will have to keep up with delivery options, or get left behind.
Reference: 7.29.16, www.washingtonpost.com, Associated Press, UPS 2Q revenue improves on strength in US, abroad