UPS Business Model: How Much Money does UPS Make

UPS Business Model: How Much Money does UPS Make

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 –

Company Overview: United Parcel Service (UPS)
Type of ServiceAverage Daily Package VolumeAverage Revenue Per Piece
Next Day Air1,889$17.74
Deferred1,622$12.62
Ground15,176$8.55
Total Average Daily Package Volume18,687$9.83

Company Information

Company NameUnited Parcel Service, Inc.
CountryUSA
HeadquartersSandy Springs, Georgia, U.S.
IndustryCourier
Company TypePublic
TickerUPS
Revenues ($B)US$97.29 billion (2021)
Market Value ($B)$178.31 Billion
Employees534,000

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 ServiceCost
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 –

WeightEstimated CostDelivery 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

https://prnt.sc/pX93Wbnu5EDT

Alaska (AK), Hawaii (HI), and Puerto Rico (PR) Origin Air Freight

https://prnt.sc/jJ41OpfLkuku

A Complete Financial Overview of UPS (2017 – 2021)

Fiscal Year (January-December)20212020201920182017
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)

Figure – 1

https://prnt.sc/zkFiqCLQ13Cj

Figure – 2

https://prnt.sc/OPIJY0Ni3Y8W

Figure – 3

https://prnt.sc/fmo8f1qhGQC2

Figure – 4

https://prnt.sc/Q5h9aGdteRRu

Figure – 5

https://prnt.sc/fLKKtxxKfmGe

Figure – 6

https://prnt.sc/2pFi2VF5uYPl

Image Source: Trefis.com

UPS Annual Revenue (Quarterly: 2009 – 2022)

Quarterly DateRevenue (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.trefis.com/data/companies/UPS/no-login-required/d3YgnbWZ/UPS-Revenues-How-Does-UPS-Make-Money-

https://www.wsj.com/market-data/quotes/UPS/financials/annual/income-statement

https://www.prc.gov/docs/121/121778/FY%202021%20Financial%20Report.pdf

https://www.macrotrends.net/stocks/charts/UPS/ups/revenue

Last Updated on December 25, 2023 by Magalie D.

Scroll to Top