UPS navigates Amazon draw down in hard pivot to premium services
View original at finance.yahoo.comUPS navigates Amazon draw down in hard pivot to premium services United Parcel Service’s cost-reduction program is not shrinking the company, but rather positioning it for profitable growth as it navigates a glide down in Amazon volumes to chase higher-margin business than short-distance courier service, a top executiv…
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UPS cost-reduction program is positioning company for profitable growth, creating more agile and profitable network to grow with right type of volume
60% confidenceUPS strategic focus shifting to less e-commerce, more small-and-medium business, more B2B, more healthcare
60% confidenceUPS expects soft revenue environment and operational adjustment costs to weigh on profits in first half of year, with improvement in second half as efficiency measures flow to bottom line
60% confidencePrimary cause of lower volumes was deliberate decision to shed 50% of Amazon volume because it didn't make money
60% confidenceFedEx is prioritizing high-value B2B segments and premium e-commerce over last-mile delivery
60% confidenceAnalysts are giving UPS solid marks in executing largest network consolidation in its history without noticeable impact on service levels
60% confidence
Data points we hold from this source
| United Parcel Service · amazon throughput reduction | 2000000 pieces_per_day |
| United Parcel Service · revenue reduction amazon | 5 USD |
| United Parcel Service · amazon volume reduction | 50 percent |