Supply Chain Digest Says...
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| UPS is positioning the service as a hybrid solution that uses the company’s parcel network to handle freight-size deliveries, offering greater predictability in cost and transit time. |
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With its stock price down about 33% over the past year and selling off its LTL business in 2021,parcel giant UPS this week announced new ground services it hopes can expand its market.
UPS unveiled UPS Ground Saver and UPS Ground with Freight Pricing this week. The company said both were designed under a strategy to compete more aggressively in the rapidly changing delivery market, driven by ecommerce.
The first new service, UPS Ground Saver, is designed for non-urgent shipments and offers a lower-cost alternative to standard UPS Ground.
The new service is targeted at direct-to-consumer brand companies and online retailers that would like to reduce shipping expenses while maintaining reliability, in what would seem is a slap to the US Postal Service.
With the new service, parcels will be delivered using UPS’s existing network, with transit times one to two days longer than its standard ground service, according to the company.
UPS Ground Saver will also include UPS’s existing tracking features, delivery photo confirmation and an option for recipients to upgrade their delivery speed through UPS My Choice, UPS’s consumer-facing delivery management platform.
The second new service, UPS Ground with Freight Pricing, is for heavier parcels shipments. The service targets loads of more than 150 pounds that are today commonly delivered by less-than-truckload carriers.
UPS says that by pricing this class of shipments using small-package rates, shippers will have a simplified and cost-effective alternative to traditional LTL freight carriage.
According to Transport Topics, UPS says that the new service covers nationwide delivery and doesn’t have common LTL freight surcharges such as liftgate fees, inside delivery costs and pallet weight charges.
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 UPS is positioning the service as a hybrid solution that uses the company’s parcel network to handle freight-size deliveries, offering greater predictability in cost and transit time.
“UPS is on a mission to transform our customer experience by offering an end-to-end portfolio which provides delivery, returns and pickup services seven days a week,” said Matt Guffey, UPS chief commercial and strategy officer. He described the new services as “the first of many product enhancements” to come in 2025.
The new services were launched as UPS seeks to grab more market share in both the high-volume ecommerce sector and the fast-growing LTL freight market.
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