According to an article in Logistics Management, the “star” of United Parcel Service’s impressive fourth quarter performance was its Sure Post product, which uses the US Postal Service to actually deliver B2C parcels:
Jerry Hempstead, principal of Hempstead Consulting, said that the biggest admission on the call by UPS was that the star its fourth quarter performance was its new Sure Post product offering, which is a contract-only service that combines the consistency and reliability of the UPS Ground network, from pickup through transferring to the Post Office, with the cost benefits of using the United States Postal Service (USPS) for final delivery.
“All the talk was of the extraordinary growth they saw in B2C and it’s obvious from the numbers that this segment can be wildly profitable when one uses that truck and driver that goes to every home six days a week operated by the Postal Service,” he said. “For the first nine months of the year UPS’s ground volume was down slightly year-over-year, but because of the volume surge in the fourth quarter it finished ahead of last year by 0.8 percent. Modest for sure but that’s still a lot of packages.”