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UPS Posts Higher Quarterly Revenue, Boosted by Small Businesses

This article discusses how the United Parcel Service and small businesses have
experienced an increase in revenue within the latest quarter. These small and midsize businesses in the United States are at a 36% rate for their average daily volume growth; this is an all-time high. These two areas have a parallel relationship because an increase in orders means that they will have to pay more to ship their products through UPS, and both parties will make more revenue.

Since the beginning of the pandemic, UPS has handled a massive amount of e-commerce orders due to the increase in dependency on online shopping. According to the article, this has led to a 22% increase in revenue ($14.01 Billion) this quarter in the country. Furthermore, another source of revenue has been through healthcare activities and the process of treating those with the virus and creating the new COVID-19 vaccine. Large sums of money are paid to UPS for their supply chain and freight, earning the company an increase of 34% in revenue in comparison to previous years.

While UPS seems to currently be a quite prosperous business, it is important to remember
they have a number of possible bottlenecks that occur with these unexpected increases in demand and revenue. One would be not having enough employees who can package, process, and ship these goods in a timely manner, while another would be a lack of drivers which would also slow down the delivery process. This huge increase in packages most definitely sets back the company, and it has been stated that weekend deliveries are being expanded in order to deliver as much as possible on time.

I thought this article was very informative and showed a clear connection in revenue
between small and midsize businesses and the United Parcel Service. It was interesting to read more about how the reliance on online delivery has increased and ultimately allowed UPS revenues to be at all-time highs.

Authored by: Brittney Dong

Reference: https://www.wsj.com/articles/ups-posts-higher-quarterly-revenue-boosted-by-small-businesses-11619520777

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