United Parcel Service

United Parcel Service, Inc.
	File:UPS logo 2017.svg Logo since 2017
Company type	Public
Industry	Courier, logistics
Founded	August 28, 1907; 119 years ago in Seattle, Washington, United States
Founder	James E. Casey, Claude Ryan
Headquarters	Sandy Springs, Georgia, United States
Area served	Worldwide
Key people	Carol Tomé (CEO)
Products	Package delivery, supply chain management, freight forwarding, retail shipping stores
Number of employees	>20,000 (Worldport facility workforce)
Parent	None
Website	www.ups.com

United Parcel Service, Inc. (UPS) is a prominent American multinational enterprise specializing in shipping and supply chain management, established in 1907. Initially known as the American Messenger Company, which concentrated on telegraph services, UPS has evolved into a leading Fortune 500 company and ranks among the largest global shipping couriers. The company is widely recognized for its ground shipping operations and manages the UPS Store, a retail network that facilitates shipments and provides resources for small businesses. Additionally, UPS delivers air freight with options for overnight or two-day arrival and offers services for post office box recipients through UPS Mail Innovations and UPS SurePost.

In terms of revenue, UPS stands at the forefront of the worldwide courier sector, generating approximately US$85 billion in 2020 and outperforming competitors such as DHL and FedEx. Its principal international hub, UPS Worldport located in Louisville, Kentucky, ranks as the fifth busiest airport globally by cargo volume and is the third most trafficked in the United States. The corporation is also one of the largest private-sector employers within the U.S. As of 2023, UPS holds the third position in parcel volume shipments domestically since 2015, trailing only the United States Postal Service and Amazon.

Foundation

The American Messenger Company was founded on August 28, 1907, by James E. Casey alongside Claude Ryan in Seattle, Washington, beginning operations with a modest $100 debt. Initial deliveries were conducted on foot or by bicycle. The business primarily handled package deliveries to retail establishments and provided special delivery mail services for its principal client, the United States Post Office Department.

In 1913, the company acquired its first motorized delivery vehicle, a Ford Model T. Subsequently, Casey and Ryan merged with competitor Evert McCabe to create Merchants Parcel Delivery, pioneering consolidated delivery by grouping packages destined for specific neighborhoods onto single vehicles.

Charlie Soderstrom joined the firm in 1916, contributing to fleet expansion. By 1919, operations extended beyond Seattle to Oakland, California, accompanied by a rebranding to United Parcel Service (UPS). In 1922, UPS obtained common carrier status in Los Angeles, becoming one of the few U.S. firms authorized to provide such service. Initially confined to regions surrounding Los Angeles, this coverage expanded to a radius of up to 125 miles by 1927. To improve package processing efficiency, UPS introduced a conveyor belt system in 1924.

By 1930, consolidated carrier services were launched in New York City and subsequently expanded throughout major metropolitan areas in the Eastern and Midwestern United States, positioning UPS as a direct competitor to USPS. Expansion beyond California brought UPS under Interstate Commerce Commission oversight; Chicago became the first city outside California where common carrier status was utilized in 1953.

UPS initiated air delivery services in 1929 through private airlines but discontinued them during the Great Depression due to insufficient demand. Air operations recommenced in 1953 with UPS Blue Label Air, providing two-day delivery between key cities on the East and West Coasts.

Bomb detonation

Just before 3:00 a.m. on December 5, 1974, a package bomb detonated at UPS's Northside facility in Pittsburgh, Pennsylvania, resulting in one fatality and injuring ten others. The explosive package had been sent from Erie, Pennsylvania, intended for the Spectrum Cycle Shop located in Armstrong County. This incident was investigated by local law enforcement in conjunction with the FBI.

Growth and diversification

In 1975, UPS shifted its headquarters to Greenwich, Connecticut and extended its delivery services across all 48 contiguous states, becoming the first package carrier to reach every address within this region. That same year marked UPS's debut on the international stage with operations commencing in Canada. A year later, in 1976, UPS initiated domestic services within West Germany.

The company introduced its Next Day Air Service in 1985, covering the contiguous United States and Puerto Rico. By 1988, UPS Airlines was established following FAA approval, rapidly becoming the fastest-growing airline in FAA history and eventually ranking as the tenth largest airline in the U.S. Air service expanded domestically to Germany by 1989. In 1991, UPS relocated its headquarters to Sandy Springs, Georgia, near Atlanta. The subsequent year saw UPS acquire Haulfast and Carryfast, which were integrated into UPS Supply Chain Solutions to strengthen pallet hauling and trucking operations. By 1993, UPS was handling deliveries of up to 11.5 million packages daily.

To enhance efficiency for large-scale operations, UPS developed the "Delivery Information Acquisition Device" (DIAD) in 1991, allowing drivers to upload delivery data instantly. Electronic tracking for ground shipments was introduced in 1992, followed by the launch of UPS.com in 1994 to offer customers online access to shipment details.

In 1995, UPS expanded its service parts logistics by acquiring SonicAir to compete with Choice Logistics. That year also saw the creation of the UPS Logistics Group to provide global supply chain management and consulting services. A major labor strike involving Teamsters members in 1997 halted company operations for sixteen days. In 1998, UPS Capital was established to deliver integrated financial services supporting business expansion. The purchase of Challenge Air Cargo in 1999 broadened UPS's reach into Latin America.

On November 10, 1999, UPS completed its initial public offering (IPO), which was the largest of the twentieth century—transitioning into a publicly traded company and strengthening its capital base for future growth.

21st century

In 2001, UPS acquired Mail Boxes Etc., Inc., a franchised packing and shipping retail chain operating across the US and Canada; it was rebranded as The UPS Store in 2003.

UPS entered the heavy freight sector in 2004 through acquiring Menlo Worldwide Forwarding for $150 million plus $110 million in assumed debt, subsequently renaming it UPS Supply Chain Solutions. The following year, it purchased Overnite Transportation, an LTL trucking firm, for $1.25 billion and rebranded it as UPS Freight in 2006.

In 2005, UPS introduced nonstop delivery routes connecting Guangzhou with the United States and acquired UK parcel carrier Lynx Express for £55.5 million ($97.1 million), establishing joint operations based in Dartford, Kent.

Marking its centennial anniversary in 2007, UPS forged a cargo alliance with All Nippon Airways in 2008 to enhance its global air freight network.

UPS announced plans to acquire TNT Express for $6.8 billion in 2012 aiming to expand its presence across Europe and Asia; however, the European Commission blocked this deal in 2013 due to competition concerns. That same year, UPS acquired Brussels-based Kiala to strengthen its e-commerce delivery infrastructure.

By 2018, reports from The Wall Street Journal indicated that UPS's operational efficiency was hindered by outdated technology compared to industry rivals.

In 2019, UPS partnered with autonomous trucking startup TuSimple for cargo transport services within Arizona and received FAA approval to deploy drones for healthcare-related deliveries.

During 2020, UPS invested more than $400 million into UK electric vehicle company Arrival and placed an order for 10,000 electric vans aimed at modernizing its delivery fleet. Carol Tomé was appointed CEO that year to steer the company through evolving trade dynamics and technological advancements. Additionally, autonomous trucking routes operated by TuSimple expanded between Phoenix and El Paso.

In January 2021, UPS divested its less-than-truckload freight division—UPS Freight—to Canadian logistics operator TFI International for $800 million to concentrate on small-package delivery services. At the time of sale, UPS Freight generated revenues of $3.15 billion and employed approximately 14,500 workers; post-acquisition it was renamed TForce Freight.

Throughout the COVID-19 pandemic period, UPS shifted focus toward smaller clients and reported a sales increase of 21% reaching $24.9 billion during Q4 of 2020. CEO Tomé noted that Amazon accounted for $11.3 billion (13.3%) of total revenue that year.

Between late 2021 and throughout 2022, UPS bolstered its e-commerce and last-mile delivery capabilities through acquisitions of delivery platform Roadie and logistics firm Delivery Solutions.

In November 2022 and September 2023 respectively, UPS enhanced its healthcare logistics portfolio by acquiring Europe-based Bomi Group and Long Beach-headquartered MNX.

In October 2023, UPS expanded into reverse logistics by purchasing Happy Returns—a Los Angeles-based company previously owned by PayPal.

Following a challenging year in 2023, CEO Tomé announced workforce reductions of approximately 12,000 jobs alongside mandates requiring full-time office attendance starting January 2024.

Most recently in July 2024, UPS agreed to acquire Estafeta Mexicana—a Mexican logistics enterprise—with completion expected before year-end; this move aims to strengthen global operations and increase market presence within Latin America.

Louisville UPS Worldport

The Worldport, UPS's central global air cargo hub, is situated at Louisville Muhammad Ali International Airport. This facility contributes significantly to the airport's status as the second-largest cargo airport in the United States and the fourth busiest worldwide.

Key features of the Worldport include:

A fleet of 290 aircraft;
A workforce exceeding 20,000 employees;
A facility spanning 5.2 million square feet (equivalent to roughly 90 football fields);
The ability to handle 115 packages every second, totaling about 416,000 packages each hour;

Regional Air Hubs

Within the U.S., UPS manages five principal regional air hubs located in Ontario, California; Dallas, Texas; Rockford, Illinois; Philadelphia, Pennsylvania; and Atlanta, Georgia. These hubs play a vital role in sorting, transferring, and facilitating deliveries.

Poland

In 2017, UPS launched an 11,000-square-meter package processing center in Mysłowice. This facility is equipped with a conveyor system capable of sorting up to 6,000 packages per hour. It also features parking space for 170 package vehicles and a customer service call center. The new center is more than three times larger than the previous site in Katowice. Mysłowice was chosen due to its close proximity to business distribution hubs and Katowice airport, where UPS has invested in expanded air cargo capabilities.

Turkey

UPS operates a network of 15 small-package facilities along with four Supply Chain Solutions (SCS) centers across major Turkish cities such as Istanbul, Ankara, Izmir, Bursa, and Antalya.

Asia-Pacific Air Hub

The largest UPS hub outside of the United States is located at Singapore Changi Airport, handling over 1.1 million packages daily. In response to increased post-pandemic e-commerce demand, the facility underwent a 25% expansion in 2023. It now manages 40% more import shipments and 45% more exports, with extended cut-off times for export pickups. The hub includes temperature-controlled storage ranging from −20 to 25 °C, supporting critical healthcare logistics such as COVID-19 vaccine shipments as part of Changi’s pharmaceutical cold chain infrastructure.

Regional Hubs

UPS maintains five additional regional hubs throughout the Asia-Pacific region in Hong Kong, Japan, Korea, Malaysia, and Thailand. These centers serve as key sorting and distribution points within this market.

Financial Overview

For the fiscal year 2023, UPS reported net earnings of US$6.71 billion on revenues totaling US$90.96 billion, marking a 9% decrease compared to the previous year. The company was ranked 34th on the 2022 Fortune 500 list based on total revenue.

Year	Revenue in mil. USD	Net income in mil. USD	Total Assets in mil. USD	Employees
2005	42,581	3,870	34,947	407,000
2006	47,547	4,202	33,210	428,000
2007	49,692	382	39,042	425,300
2008	51,486	3,003	31,879	426,000
2009	45,297	1,968	31,883	408,000
2010	49,545	3,338	33,597	400,600
2011	53,105	3,804	34,701	398,000
2012	54,127	807	38,863	399,000
2013	55,438	4,372	36,212	395,000
2014	58,232	3,032	35,440	435,000
2015	58,363	4,844	38,311	444,000
2016	60,906	3,431	40,377	434,000
2017	65,872	4,910	45,403	454,000
2018	71,861	4,791	50,016	481,000
2019	74,094	4,440	57,857	495,000
2020	84,628	1,343	62,408	458,000
2021	97,287	12,890	69,405	534,000
2022	100,338	11,548	71,124	536,000
2023	90,958	6,708	70,857	500,000

Operations

UPS's primary focus lies in delivering packages and documents worldwide with guaranteed time-definite service. Recently, the company broadened its offerings to include less-than-truckload (LTL) freight and supply chain management, predominantly within the United States.

UPS organizes its business activities into three main categories:

U.S. Domestic Package operations
International Package operations
Supply Chain & Freight operations

United States domestic shipping

Within the U.S., UPS provides a range of consumer shipping options:

UPS Ground delivers shipments with a day-specific promise, generally within five days.
UPS 3-Day Select caters to less time-sensitive deliveries, utilizing air or ground transport depending on circumstances.
UPS 2nd Day Air ensures delivery within two days, including a morning delivery option.
UPS Next Day Air guarantees overnight delivery through three service levels:
- Next Day Air Saver: guaranteed delivery by the next afternoon
- Next Day Air: delivery scheduled between 10:30 AM and noon
- Next Day Air Early: earliest arrival by 8:30 AM in major metropolitan areas and by 9:30 AM elsewhere
UPS Express Critical represents UPS’s fastest option, promising end-of-day delivery across all U.S. states, the District of Columbia, and Puerto Rico.

Moreover, UPS SurePost integrates UPS’s long-haul transit with USPS’s final-mile delivery to optimize cost-effectiveness for specific shipments.

International Package

The International Package division manages deliveries to more than 220 countries and territories, handling shipments either fully outside U.S. borders or involving foreign origins and destinations.

Key international services include:

UPS Standard, serving shipments to Mexico and Canada
UPS Worldwide Expedited, typically delivering international packages within 2 to 5 business days
UPS Worldwide Saver, offering overnight delivery to Canada, two-day service to Mexico, Latin America, and Europe, and three or more days elsewhere with end-of-day arrival
UPS Worldwide Express, designed for urgent packages with delivery by approximately 10:30 AM to noon
UPS Worldwide Express Plus, providing earlier morning delivery for highly time-sensitive shipments

These options enable UPS to address a variety of market demands globally by offering diverse delivery speeds, reinforcing its position in international logistics.

Supply Chain & Freight

The Supply Chain & Freight segment (UPS-SCS) covers UPS’s freight forwarding, contract logistics, and associated services across more than 175 countries. This division provides comprehensive supply chain design, execution, freight forwarding, customs brokerage, mail services, and consulting.

Included within this segment are business units such as The UPS Store and UPS Capital. Prior to 2021, UPS Freight managed LTL and truckload (TL) transportation in North America before its sale to TFI International, after which it was rebranded as TForce Freight.

Personnel structure

In 2016, UPS employed roughly 444,000 individuals worldwide. By 2023, about 330,000 drivers, package handlers, and clerical workers—more than half of whom were part-time—were members of the International Brotherhood of Teamsters. The average annual salary for a full-time package delivery employee with over four years of experience reached $95,000 in 2023.

UPS’s only nationwide strike occurred in 1997 and was resolved under the leadership of Teamsters President Ron Carey. In July 2023, a strike threat related to wages, benefits, and air conditioning in delivery vehicles was avoided after UPS agreed to increase starting pay for part-time employees to $21 per hour and committed to installing ventilation improvements in vehicles beginning January 2024. Had the strike occurred, it would have been the largest single-employer labor stoppage in U.S. history with an estimated economic impact of $7 billion.

Chief executives

1907–1962, James E. "Jim" Casey
1962–1972, George D. Smith
1972–1973, Paul Oberkotter
1973–1980, Harold Oberkotter
1980–1984, George Lamb
1984–1989, John W. Rogers
1989–1996, Kent C. "Oz" Nelson
1997–2001, James P. Kelly
2002–2007, Michael L. "Mike" Eskew
2008–2014, Scott Davis
2014–2020, David Abney
2020–present, Carol B. Tomé

Competitors

Within the United States, UPS faces significant competition from the United States Postal Service (USPS), FedEx, and Amazon Logistics, as well as regional providers such as OnTrac and LSO. On the global stage, its rivals include companies like SF Express, Canada Post along with its subsidiary Purolator, Deutsche Post and its DHL Express division, Royal Mail, and Japan Post Service.

Traditionally, competition focused on affordable ground shipping services exemplified by USPS Parcel Post. FedEx entered the ground parcel market through its acquisition of Roadway Package System (RPS) in 1998, which was rebranded as FedEx Ground two years later. DHL expanded its presence in the U.S. by acquiring Airborne Express in 2003.

To respond to FedEx and DHL’s expansion efforts, UPS collaborated with USPS to create UPS Mail Innovations. This service allows UPS to transfer lightweight mail and packages to USPS for final delivery in a process known as zone skipping. Additionally, UPS offers SurePost, which utilizes UPS’s Ground network for parcels under ten pounds before handing off last-mile delivery to USPS.

The growth of e-commerce combined with environmental awareness has led to competition from specialized carriers focusing on eco-friendly delivery methods. USPS highlights its efficiency by emphasizing lower fuel consumption per delivery due to established routes. Niche providers like ParcelPool.com cater specifically to residential deliveries destined for APO/FPO addresses and U.S. territories, addressing the needs of catalog retailers and online merchants seeking cost-effective residential shipping solutions.

In 2019, UPS attempted but failed to persuade the Supreme Court to alter USPS pricing policies aimed at increasing postal rates.

Transportation

Globally, UPS maintains a fleet exceeding 119,000 vehicles ranging from bicycles to large tractor-trailers. Consistent with a long-standing policy against endorsing manufacturers, all external branding badges are removed before vehicles enter service.

Typically, ground vehicles remain operational for 20 to 25 years until structural wear necessitates retirement. Instead of resale, these vehicles are dismantled for parts and then crushed under supervision with all branding painted over. Exceptions include certain package cars and older semi tractors repurposed for internal company use.

Delivery vans

UPS refers to its delivery vans as "package cars," offering a variety of models tailored to route demands and parcel volumes. The iconic rounded "bubble-nose" style has been in use since 1965. Vehicle bodies are manufactured by Morgan Olson, Union City Body, and Utilimaster; chassis suppliers have shifted over time from Ford and General Motors to Freightliner and Workhorse.

Earlier models featured manual transmissions and steering systems; however, current models are equipped with automatic transmissions and power steering for improved driver comfort. For routes with lower package volumes, UPS utilizes production-based minivans such as the Ford Transit Connect, Dodge Grand Caravan C/V, and Mercedes-Benz Sprinter box vans. Reflecting a strategic focus on reducing energy costs, the company has also procured Modec electric vans for operations in the United Kingdom and Germany.

Most UPS ground vehicles do not have air conditioning except for tractor-trailers; this has raised concerns regarding driver well-being during extended shifts. Newer vehicle models incorporate enhanced ventilation systems to improve comfort.

On January 29, 2020, UPS made a strategic investment in Arrival and placed an order for 10,000 Generation 2 electric vehicles, reinforcing its commitment to fleet electrification and sustainability initiatives.

Bicycles

Starting in 2008, UPS began employing bicycle couriers in Vancouver, Washington as well as several Oregon cities including Portland, Salem, Corvallis, Eugene, and Medford. A decade later, in 2018, the company introduced a pilot program in Seattle featuring pedal-assist electric cargo bikes produced by Portland-based Truck Trike, designed to efficiently maneuver through busy downtown locations such as Pike Place Market. In Amsterdam, UPS operates Urban Arrow delivery bicycles under a special concession agreement.

Cargo airline

UPS Airlines ranks as the fourth-largest cargo airline worldwide, serving over 800 destinations—the highest number among all carriers. Established in 1988 and headquartered in Louisville, Kentucky (the site of its main air hub, Worldport), UPS also runs additional U.S. hubs located in Ontario, California, Dallas, Texas, Rockford, Illinois, and Philadelphia. Its European operations center around a hub in Cologne, Germany, complemented by facilities in Hong Kong and two hubs situated within mainland China to support Asian logistics.

By 2025, UPS Airlines operates a fleet approaching 300 aircraft, positioning itself as a direct competitor to FedEx Express by facilitating air freight services across more than 200 countries and territories globally.

Cargo drone airline

Founded in July 2019, UPS Flight Forward is a subsidiary that became the first to obtain FAA Part 135 Standard certification. This authorization allows unlimited drone operations regardless of size or payload weight—including cargo exceeding 55 pounds—and permits an unrestricted number of remote operators.

Brown

The distinctive brown color associated with UPS, known as Pullman brown, was selected based on founder James E. Casey’s personal preference and the observation by partner Charlie Soderstrom that brown concealed dirt better than yellow. This signature hue was prominently featured in the company’s advertising campaign during the 2000s with the slogan: "What can Brown do for you?"

Font

For its marketing materials, UPS engaged FutureBrand to develop UPS Sans, a customized typeface derived from FF Dax by FSI FontShop International. The collaboration resulted in an agreement between both firms to avoid legal disputes.

Reputation

UPS has encountered criticism concerning labor practices, particularly regarding insufficient protections and limited sick leave provisions during the COVID-19 pandemic. Additionally, the company has been scrutinized for incidents involving damaged, delayed, or improperly handled packages, which have affected its service reputation.

Advocates for safer streets have singled out UPS alongside other delivery companies for frequently parking illegally within bike lanes during deliveries—posing hazards to cyclists. This behavior prompted a lawsuit in New York in 2015 and drew censure from Washington, D.C.'s transportation authorities in 2018. These challenges underscore the difficulties UPS faces in balancing operational demands with regulatory adherence and community expectations.

Environmental record

As of 2013, UPS’s global fleet comprised more than 104,900 vehicles, including close to 7,000 that run on alternative fuels. In May 2008, the company placed orders for 200 hybrid electric vehicles and 300 compressed natural gas trucks from Daimler Trucks North America to expand its environmentally conscious fleet. An additional 200 hybrid electric vehicles were incorporated into the fleet in 2016 as part of ongoing sustainability efforts.

UPS received an environmental score of 80 out of 100 on the Climate Counts rating system and was honored with the Clean Air Excellence Award by the United States Environmental Protection Agency for its alternative fuel programs. Nevertheless, in 2022, UPS agreed to pay $5.3 million to settle hazardous waste violations identified at over 1,100 sites.

In October 2009, UPS became the first small-package carrier to provide customers with carbon offset options aimed at neutralizing greenhouse gas emissions generated during package shipping. Initially limited to online transactions and high-volume shippers, this offering has since expanded to be broadly available through UPS’s shipping platforms and affiliated third-party systems.

This environmental initiative aligns with UPS’s larger business strategy by strengthening its sustainability credentials and enhancing competitive positioning within the logistics sector.

Carbon footprint

For the fiscal year ending December 31, 2020, UPS disclosed total greenhouse gas emissions (both direct and indirect) amounting to 16,500 kilotonnes of CO₂e, reflecting a 10% rise compared to the previous year. The corporation has set a target to reach net zero carbon emissions by the year 2050, aligning with its broader sustainability objectives.

UPS's annual Total CO2e Emissions - Market-Based Scope 1 + Scope 2 (kilotonnes)
Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020
13,263	13,792	14,635	14,954	16,500

External links