United Parcel Service is America’s number one parcel and delivery service provider and it has a business operation in 220 countries around the world. By revenue, UPS is the world’s largest courier service company. UPS’s revenue is larger than its competitors like FedEx, USPS, etc. The UPS business model mainly consists of delivering of packages and documents worldwide. However, the UPS business model also includes global supply chain services and freight services.
Company Overview: United Parcel Service (UPS)
Established on August 28, 1907, by James E. Casey, United Parcel Service is an American multinational package delivery company. Mostly known as UPS, it is a leading provider of global supply chain management solutions. UPS has become a Fortune 500 company and it offers various services including packaging and shipping, mailboxes, and printing/document services. The annual revenue of UPS in 2022 is about $102 billion and it makes UPS the world’s largest courier service provider by revenue. The below table will give you a clear idea of UPS’s daily average package volume and revenue –
| Type of Service | Average Daily Package Volume | Average Revenue Per Piece |
| Next Day Air | 1,889 | $17.74 |
| Deferred | 1,622 | $12.62 |
| Ground | 15,176 | $8.55 |
| Total Average Daily Package Volume | 18,687 | $9.83 |
Company Information
| Company Name | United Parcel Service, Inc. |
| Country | USA |
| Headquarters | Sandy Springs, Georgia, U.S. |
| Industry | Courier |
| Company Type | Public |
| Ticker | UPS |
| Revenues ($B) | US$97.29 billion (2021) |
| Market Value ($B) | $178.31 Billion |
| Employees | 534,000 |
UPS Business Model
UPS’s business model has 4 operating segments. They are –
- US Domestic Package
- International Package
- Supply Chain & Others
- Freight
1. US Domestic Package
UPS offers domestic package service to 50 states in the USA and Puerto Rico. Their service includes Domestic Deferred packages, Domestic Ground packages, and Next Day Air shipments. According to this service, the customer will receive the package within 2 – 3 business days.
| UPS Package Pickup Service | Cost |
| UPS Same-Day Pickup (One-Time) | $12.00 |
| Future-Day Pickup (One-Time) | $7.00 |
| UPS Daily-Pickup | $19.50-$36.00 |
| Daily On-Route Pickup | $10-$20.00 |
| Saturday Pickup | $3-$16.00 |
UPS Delivery Hours
- UPS Next Day Air – The next business day by 10:30 AM (local time)
- UPS Day Next Air Saver – The next business day by 3 PM (local time)
- UPS Day Next Air AM – The next business day by 8 AM (local time)
- UPS 2nd Day Air – Two business days, by the end of the day
- UPS 2nd Day Air AM – Two business days, by the end of the next morning (noontime)
- UPS 3-Day Select – Three business days, by the end of the day
2. International Package
UPS offers International Cargo, International Domestic, and International Package service to more than 220 countries around the world. Through the international package service, customers can send and receive letters, documents, and parcels. The shipping cost of the UPS international package varies depending on the parcel type (document, package), parcel weight, destination, etc. The below table will give you an idea of the estimated cost of a UPS international package –
| Weight | Estimated Cost | Delivery time |
| 1 lbs 2 lbs 3 lbs 4 lbs 5 lbs 6 lbs 7 lbs 8 lbs 9 lbs 10 lbs 11 lbs 12 lbs 13 lbs 14 lb 15 lbs 16 lbs 17 lbs 18 lbs 19 lbs 20 lbs 21 lbs 22 lbs 23 lbs 24 lbs 25 lbs 26 lbs 27 lbs 28 lbs 29 lbs 30 lbs 31 lbs 32 lbs 33 lbs 34 lbs 35 lbs 36 lbs 37 lbs 38 lbs 39 lbs 40 lbs 41 lbs 42 lbs 43 lbs 44 lbs 45 lbs 46 lbs 47 lbs 48 lbs 49 lbs 50 lbs 51 lbs 52 lbs 53 lbs 54 lbs 55 lbs 56 lbs 57 lbs 58 lbs 59 lbs 60 lbs 61 lbs 62 lbs 63 lbs 64 lbs 65 lbs 66 lbs 67 lbs 68 lbs 69 lbs 70 lbs 71 lbs 72 lbs 73 lbs 74 lbs 75 lbs 76 lbs 77 lbs 78 lbs 79 lbs 80 lbs 81 lbs 82 lbs 83 lbs 84 lbs 85 lbs 86 lbs 87 lbs 88 lbs 89 lbs 90 lbs 91 lbs 92 lbs 93 lbs 94 lbs 95 lbs 96 lbs 97 lbs 98 lbs 99 lbs 100 lbs | $94.00 $103.00 $111.00 $119.00 $121.00 $136.00 $145.00 $149.00 $152.00 $156.00 $176.00 $185.00 $193.00 $195.00 $196.00 $213.00 $215.00 $215.00 $217.00 $224.00 $236.00 $244.00 $251.00 $255.00 $259.00 $268.00 $279.00 $285.00 $288.00 $295.00 $302.00 $309.00 $316.00 $324.00 $331.00 $338.00 $345.00 $353.00 $360.00 $368.00 $375.00 $382.00 $389.00 $396.00 $404.00 $411.00 $418.00 $425.00 $432.00 $440.00 $476.00 $483.00 $490.00 $497.00 $504.00 $512.00 $519.00 $526.00 $534.00 $541.00 $548.00 $556.00 $563.00 $570.00 $577.00 $584.00 $592.00 $599.00 $606.00 $613.00 $620.00 $628.00 $636.00 $644.00 $652.00 $660.00 $667.00 $675.00 $682.00 $690.00 $698.00 $705.00 $713.00 $721.00 $728.00 $736.00 $744.00 $752.00 $760.00 $767.00 $775.00 $783.00 $790.00 $798.00 $806.00 $813.00 $821.00 $829.00 $836.00 $844.00 | 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days 1-2 business days |
3. Supply Chain & Others
UPS also offers forwarding and logistic service in more than 195 countries around the world. Their supply chain and logistics service include supply chain design and management, freight distribution, customs brokerage, mail, and consulting services. Other business units of this segment are Mail Boxes Etc., The UPS Store and UPS Capital.
4. Freight
Freight service from UPS includes regional, inter-regional, and long-haul LTL service. UPS offers Freight service to 50 states as well as Canada, Puerto Rico, Guam, the Virgin Islands, and Mexico. Various UPS Freight rates –
U.S. 48 Origin Air Freight
Alaska (AK), Hawaii (HI), and Puerto Rico (PR) Origin Air Freight
A Complete Financial Overview of UPS (2017 – 2021)
| Fiscal Year (January-December) | 2021 | 2020 | 2019 | 2018 | 2017 |
| Sales/Revenue Sales Growth Cost of Goods Sold (COGS) incl. D&A COGS excluding D&A Depreciation & Amortization Expenses Depreciation Amortization of Intangibles COGS Growth Gross Income Gross Income Growth Gross Profit Margin SG&A Expense Other SG&A SGA Growth EBIT Unusual Expense Non-Operating Income/Expenses Non-Operating Interest Income Interest Expense Interest Expense Growth Gross Interest Expense Interest Capitalized Pretax Income Pretax Income Growth Pretax Margin Income Tax Income Tax – Current Domestic Income Tax – Current Foreign Income Tax – Deferred Domestic Income Tax – Deferred Foreign Consolidated Net Income Net Income Net Income Growth Net Margin Net Income After Extraordinariness Net Income Available to Common EPS (Basic) EPS (Basic) Growth Basic Shares Outstanding EPS (Diluted) EPS (Diluted) Growth Diluted Shares Outstanding EBITDA EBITDA Growth EBITDA Margin EBIT | 97,204 15.13% 79,772 76,819 2,953 2,478 475 27.33% 17,432 -19.97% 17.93% 4,325 – -68.99% 13,107 419 4,590 – 683 -0.15% 741 58 16,595 799.95% 17.07% 3,705 1,582 478 1,584 61 12,890 12,890 859.79% 13.26% 12,890 12,890 14.68 852.14% 874 – 0.00% 878 16,060 52.46% – 13,107 | 84,432 14.23% 62,649 59,951 2,698 2,282 416 8.34% 21,783 35.36% – 13,947 13,947 69.73% 7,836 330 -4,978 – 684 8.74% 771 87 1,844 -67.37% – 501 939 420 -884 26 1,343 1,343 -69.75% – 1,343 1,343 1.54 -69.83% 867 1.54 -69.82% 871 10,534 2.91% – 7,836 | 73,917 2.79% 57,824 55,464 2,360 1,983 377 0.14% 16,093 13.60% – 8,217 8,217 15.86% 7,876 265 -1,330 – 629 9.97% 720 91 5,652 -6.10% – 1,212 753 359 162 -62 4,440 4,440 -7.33% – 4,440 4,440 5.11 -7.26% 864 5.11 -7.22% 869 10,236 10.29% – 7,876 | 71,911 8.06% 57,745 55,538 2,207 1,868 339 8.54% 14,166 6.12% – 7,092 7,092 21.13% 7,074 95 -388 – 572 37.17% 669 97 6,019 -15.66% – 1,228 96 374 743 15 4,791 4,791 -2.32% – 4,791 4,791 5.51 -1.78% 866 5.51 -1.76% 870 9,281 -5.06% – 7,074 | 66,550 – 53,201 50,919 2,282 1,995 287 – 13,349 – – 5,855 5,855 – – -46 6 8 417 – 466 49 7,137 – – 2,232 720 288 1,233 -9 4,905 4,905 – – 4,905 4,905 5.61 – 871 5.61 – 875 9,776 – |
UPS Revenue and Growth Chart (2019 – 2023)
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Image Source: Trefis.com
UPS Annual Revenue (Quarterly: 2009 – 2022)
| Quarterly Date | Revenue (Millions of US $) |
| 2022-06-30 2022-03-31 2021-12-31 2021-09-30 2021-06-30 2021-03-31 2020-12-31 2020-09-30 2020-06-30 2020-03-31 2019-12-31 2019-09-30 2019-06-30 2019-03-31 2018-12-31 2018-09-30 2018-06-30 2018-03-31 2017-12-31 2017-09-30 2017-06-30 2017-03-31 2016-12-31 2016-09-30 2016-06-30 2016-03-31 2015-12-31 2015-09-30 2015-06-30 2015-03-31 2014-12-31 2014-09-30 2014-06-30 2014-03-31 2013-12-31 2013-09-30 2013-06-30 2013-03-31 2012-12-31 2012-09-30 2012-06-30 2012-03-31 2011-12-31 2011-09-30 2011-06-30 2011-03-31 2010-12-31 2010-09-30 2010-06-30 2010-03-31 2009-12-31 2009-09-30 2009-06-30 2009-03-31 | $24,766 $24,378 $27,771 $23,184 $23,424 $22,908 $24,896 $21,238 $20,459 $18,035 $20,568 $18,318 $18,048 $17,160 $19,848 $17,444 $17,456 $17,113 $18,975 $16,173 $15,927 $15,510 $17,635 $14,928 $14,629 $14,418 $16,054 $14,237 $14,095 $13,977 $15,895 $14,290 $14,268 $13,779 $14,976 $13,521 $13,507 $13,434 $14,571 $13,071 $13,349 $13,136 $14,166 $13,166 $13,191 $12,582 $13,421 $12,192 $12,204 $11,728 $12,377 $11,153 $10,829 $10,938 |
References:
https://www.wsj.com/market-data/quotes/UPS/financials/annual/income-statement
https://www.prc.gov/docs/121/121778/FY%202021%20Financial%20Report.pdf