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UPS to add seven day delivery, drones as it seeks to support ecommerce

UPS

UPS has announced a raft of new services in the US and worldwide including seven day delivery and drones as it seeks to capture new growth opportunities in ecommerce.

The shipping giant said it had established a new subsidiary called Flight Forward which will allow it to quickly apply for certification to fly drones. The company already uses drones alongside partner Matternet to operate drone deliveries of medical samples at WakeMed hospitals in Raleigh.

The company said it will begin offering seven day delivery and pick up from the beginning of next year. It is also adding 12000 new access points for click and collect in the US at CVS Pharmacy, Michaels and Advance Auto Parts stores, increasing  the number to 21,000 in the US and 40,000 globally.

The company has introduced the UPS My Choice for Business Service platform, a new tool for smaller merchants providing better visibility over their shipping through a web-based dashboard and alerts. It has also launched the Worldwide Economy service in the US, Canada, China, Hong Kong and the UK, designed to offer more affordable shipping.

UPS said it was investing to optimise transportation assets, shipping modes and technology to improve time in transit. It also announced it would extend pick-up times for next-day shipments to about 85% of the US population as well as add 10 million pounds of additional lift capacity in its air fleet.

The news came as UPS announced revenue of €18.05 billion and net income of $1.69 billion, up from $17.46 billion and $1.49 billion in the same period last year.

Kevin Warren, UPS CMO, said: “We will leverage the combination of the UPS Network, UPS Access Point locations and SurePost in collaboration with the United States Postal Service to efficiently provide these exciting new capabilities.

“Building on an expanded relationship with the Postal Service to help deliver seven day service to our customers makes good business sense.”

David Abney, UPS chairman and CEO, said: “UPS continues its commitment to helping our customers grow and succeed while also creating higher UPS network utilisation and profitable growth.

“Transformation, including technology-driven modernisation in our network and technology platforms, is enabling major enhancements to our product portfolio and our customers’ experience.”

Kate Gutmann, chief sales and solutions officer, said: “We remain the ecommerce shipper of choice, providing unmatched support to meet our customers’ needs for premium, quick delivery solutions.

“These partnerships and platforms provide a win-win for our customers and UPS.  Our customers gain convenience and control and UPS attains further geographic reach and greater densities.”

“This is an exciting and momentous time at UPS, as we leverage the exceptional power of UPS technology and innovation to bring to market new industry-first capabilities,” said Abney. “We have even more exciting solutions on the way.  UPS will remain an indispensable partner by delivering value for customers, employees and shareowners through speed, technology and reliable execution.”