United Parcel Service, Inc. (UPS) is an Americanmultinationalshipping & receiving andsupply chain management company founded in 1907.[1] Originally known as theAmerican Messenger Company specializing in telegraphs, UPS has expanded to become aFortune 500 company[6] and one of the world's largest shippingcouriers. UPS today is primarily known for its ground shipping services as well asthe UPS Store, a retail chain which assists UPS shipments and provides tools for small businesses. UPS offersair shipping on an overnight or two-day basis and delivers topost office boxes through UPS Mail Innovations and UPS SurePost.
On August 28, 1907,James E. Casey founded the American Messenger Company with Claude Ryan[11] inSeattle, Washington,[12] capitalized with $100 in debt.[13] Most deliveries at this time were made on foot and bicycles were used for longer trips.
The American Messenger Company focused primarily on package delivery to retail stores with special delivery mail delivered for its largest client, theUnited States Post Office Department—the predecessor of today'sUnited States Postal Service. In 1913, the company acquired aFord Model T as its first delivery vehicle. Casey and Ryan merged with a competitor, Evert McCabe, and formedMerchants Parcel Delivery. Consolidated delivery was also introduced, combining packages addressed to a certain neighborhood onto one delivery vehicle.[13]
In 1916, Charlie Soderstrom joined Merchants Parcel Delivery bringing in more vehicles for the growing delivery business. In 1919, the company expanded for the first time outside of Seattle toOakland, California, and changed its name to United Parcel Service.[14]
Thecommon carrier service was acquired in 1922 from a company in Los Angeles, California. UPS became one of the only companies in the United States to offer common carrier service. At first, common carrier was only limited to a small area around Los Angeles but by 1927 expanded to areas up to 125 miles outside the city. In 1924, a conveyor belt system was debuted for the handling of packages for UPS operations.[14]
In 1930, a consolidated carrier service began in New York City; soon after, the company expanded its services to include other major cities in theEast and theMidwest.[15] The use of a common carrier for delivery between all customers placed UPS in direct competition with USPS, and delivering parcels beyond the California border brought it under the jurisdiction of theInterstate Commerce Commission. The first city for UPS to use common carrier status outside California was Chicago, Illinois, in 1953.[16]
Air service through UPS was first used in 1929 through private airlines. However, theGreat Depression and a lack of volume ended the service. In 1953, UPS resumed air service called UPS Blue Label Air with two-day service to major cities along theEast Coast andWest Coast.[17]
Shortly before 3:00 a.m, on the morning of December 5, 1974, a package bomb exploded at UPS's Northside center on Beaver Avenue in Pittsburgh, Pennsylvania, killing one man and injuring 10 others.[18][19] The murder case was initially investigated by Robert Coll, Assistant Superintendent of City Detectives, and later the FBI. The package originated in Erie, Pennsylvania and its destination was the Spectrum Cycle Shop, Forks Church, Armstrong Co.
In 1975, UPS moved its headquarters toGreenwich, Connecticut, and began serving all of the 48contiguous states of the United States. This expansion of operations made UPS the first package delivery company to serve every address in the contiguous United States. Additionally in 1975, UPS went international by establishing operations in Canada.[20] In 1976, UPS established a domestic operation in West Germany.[21]
UPS Next Day Air Service was launched in 1985 for all 48 contiguous states plus Puerto Rico. In 1988,UPS Airlines was launched with authorization from theFederal Aviation Administration and became the fastest-growing airline in FAA history – currently the 10th largest airline in the United States.[22] Domestic air service was added to Germany in 1989.[23] In 1991, UPS relocated its headquarters toSandy Springs, Georgia, a suburb ofAtlanta. Following this in 1992, UPS acquired both Haulfast and Carryfast and rebranded them into UPS Supply Chain Solutions. Haulfast provided the pallet haulage and trucking network for the CarryFast group of companies. By 1993, UPS was delivering up to 11.5 million packages and documents per day.
In order for the company to service the large volume of customers in 1991, UPS developed technologies to improve efficiency. A handheld device named the "Delivery Information Acquisition Device" (DIAD) was created to record and upload delivery information to the UPS network immediately upon pickup by every UPS driver.[24] In 1992, UPS began tracking all ground shipments electronically. In 1994, UPS.com debuted, and provided aninterface to make what was primarily internal operational information available for customer access.
In 1995, UPS acquiredSonicAir to offer service parts logistics and compete with Choice Logistics.[25] In the same year, UPS launched the UPS Logistics Group to facilitate global supply chain management services and consulting for customer needs. In 1997, awalkout by the 185,000 members of theTeamsters shut down UPS for 16 days.[26] In 1998, UPS Capital was established to enable companies to grow their business through a comprehensive menu of integrated financial services through UPS.[27] UPS acquiredChallenge Air in 1999 to expand its operations in Latin America.[28]
In 2001, UPS acquiredMail Boxes Etc., Inc., a franchised network of packing and shipping retail centers across the United States and Canada.[31] In 2003, the company rebranded the Mail Boxes, Etc. network asThe UPS Store.
In 2004, UPS entered theheavy freight business with the purchase ofMenlo Worldwide Forwarding, a former subsidiary of Menlo Worldwide; UPS rebranded it as UPS Supply Chain Solutions. The purchase price was US$150 million and the assumption of US$110 million in long-term debt.
On August 5, 2005, UPS announced that it had completed its acquisition ofless-than-truckload (LTL) trucking company Overnite Transportation for US$1.25 billion.[32] This was approved by theFTC and Overnite shareholders on August 4, 2005. On April 28, 2006, Overnite officially becameUPS Freight.
In 2005, UPS offered non-stop delivery service betweenGuangzhou and the United States.[33] On October 3, 2005, UPS completed the purchase ofLynx Express, one of the largest independent parcel carriers in the United Kingdom, for£55.5 million (US$97.1 million) after receiving approval for the transaction from theEuropean Commission. The first joint package car center operation inDartford, Kent, was opened in 2006.
On March 19, 2012, UPS announced that it intended to acquireTNT Express for $6.8 billion, in a move to help expand its presence in European and Asian markets.[36] However, the deal fell through in January 2013, after it was announced that UPS had failed to obtain permission from the European Commission and as such had been blocked on competition grounds.[37]
In February 2012, UPS acquiredBrussels-based company Kiala that provides e-commerce retailers the option to have goods delivered to a conventional retail location.[38]
In 2018,The Wall Street Journal reported that UPS's operations were hampered by its outdated 20th-century technology, lagging behind its competitors.[39]
In May 2019, UPS launched a partnership with autonomous trucking startup TuSimple to carry cargo acrossPhoenix, Arizona, andTucson, Arizona.[40]
In October 2019, UPS won the approval of theFederal Aviation Administration to fly drones.[41] The certification will allow UPS to deliver health care supplies using a fleet of drones.[42]
On January 29, 2020, UPS announced it was investing in UK start-upArrival and ordering 10,000 Generation 2 electric vehicles as a step towards a cleaner, more high-tech fleet. The deal runs from 2020 until 2024 and was reported to be worth more than $400 million.[43]
In March 2020, the company appointedCarol Tomé to succeed David Abney as its chief executive officer. It was viewed as a move to steer the parcel delivery company through the turbulence of trade wars, technological disruption and the risk of a pandemic-induced recession.[44]
In March 2020, UPS expanded its autonomous trips with TuSimple by adding an extra route between Phoenix andEl Paso, Texas.[45]
In January 2021, UPS announced it had agreed to sell UPS Freight, its less-than-truckload freight business, toTFI International, a Canadian transport and logistics company, for $800 million. UPS said the move would allow it to focus on small-package delivery. At the time of the sale, UPS Freight had about 14,500 employees, approximately 11,000 of them represented by the Teamsters union, and generated an estimated $3.15 billion in revenue in 2020 offering services across the US, Canada, and Mexico. TFI had reported $4.1 billion in revenue in 2019 and already operated truckload and LTL services in Canada.[46] The acquisition was completed in April and UPS Freight was renamedTForce Freight.[47]
In 2021, following the company's shift to target smaller customers to boost profits during theCOVID-19 pandemic, UPS reported a 21% jump in their fourth quarter sales to $24.9 billion. CEO Carol Tomé reported thatAmazon paid UPS $11.3 billion in shipping in 2020, accounting for 13.3% of the company's revenue.[48]
In September 2021, UPS entered into an agreement to acquireRoadie for an undisclosed amount with the transaction expected to be closed in the fourth quarter.[49]
In May 2022, UPS acquired logistics companyDelivery Solutions, a key partner for Walmart's GoLocal network.[50]
In November 2022, it was announced UPS had acquired the healthcare focused, Europe-based warehousing and temperature-controlled transport company, Bomi Group.[51]
In September 2023, it was announced UPS had acquired theLong Beach, California-headquartered time-critical, health care logistics company, MNX for an undisclosed amount.[52]
In October 2023, it was announced UPS had acquired the Los Angeles-headquarteredreverse logistics company,Happy Returns fromPayPal for an undisclosed amount.[53]
In January 2024, UPS announced that it planned to cut 12,000 jobs and mandate that staff return to the office five days a week. Chief Executive Carol Tomé blamed the move on a "difficult and disappointing year" in 2023.[54]
In July 2024, UPS announced that it had entered in to an agreement to acquire Mexican logistics company Estafeta Mexicana. It is expected to be finalized by the end of the year.[55][56]
In October 2025, the company announced it had reduced its workforce by 48,000 jobs in 2025, with 14,000 positions cut in management and 34,000 positions across its operations.[57]
Panorama of UPS Worldport Air Hub at Louisville International Airport in 2004
UPS’ global hub for air shipments is theWorldport, located atLouisville Muhammad Ali International Airport. The facility contributes to the airport's status of the second-busiest cargo airport in the United States and the fourth-busiest worldwide.[58][59]
The Worldport consists of:
290 aircraft;
more than 20,000 employees;
5.2 million square feet of building space (about 90 football fields).[60][59]
the capacity to handle 115 packages per second (equivalent to 416,000 packages flowing through its facilities every hour);
UPS has established a 11,000 square meter package center inMysłowice. The facility is equipped with a conveyor belt system capable of sorting up to 6,000 packages per hour. It also offers parking for 170 package cars and houses a customer call center. The size of the Mysłowice facility is more than three times larger than the one inKatowice. Mysłowice was chosen as the location for the new facility in 2017 due to its proximity to various business distribution centers and Katowice airport, where UPS has invested in additional air cargo capacity.[62]
UPS's Asia-Pacific Air Hub is located atSingapore Changi Airport. It is the company's largest hub outside of the United States, and handles over 1.1 million packages per day.[64][65] The hub has been expanded by 25% in 2023 to meet the growinge-commerce demand following thepandemic. After the upgrade, it can process 40% more import packages and 45% more export packages, enabling extended pick-up cut-off times for all export services.[64]
The hub also featuresrefrigerators andfreezers that can maintain temperatures between −20 and 25 °C (−4 and 77 °F) to facilitate the temporary storage of shipments, especially for critical healthcare deliveries such as COVID-19vaccines. It is part of Changi'scold chain infrastructure, which ensures an unbroken cold chain forpharmaceutical manufacturers.[65]
UPS has five regional hubs in the Asia-Pacific region, located in Hong Kong, Japan, Korea, Malaysia, and Thailand. These hubs serve as major sorting and distribution centers for packages moving within and between regions.[66]
For the fiscal year 2023, UPS reported earnings of US$6.71billion, with an annual revenue of US$90.96billion, a 9percent decrease over the previous fiscal cycle.[1] UPS ranked No. 34 on the 2022Fortune 500 list of the largest United States corporations by total revenue.[67]
UPS's primary business is the time-definite delivery of packages and documents worldwide. In recent years, UPS has extended its service portfolio to include less-than-truckload (LTL) transportation andsupply chain services, primarily in the U.S.[68][69]
UPS Ground for day-definite delivery. Can take up to 5 days.[70]
UPS 3-Day Select for less-sensitive express shipments. This service may use either air or ground transportation depending on distance, demand, and weather conditions, and as noted by its name, can take up to three days.[71]
UPS 2nd Day Air for packages that must arrive within two days. UPS also offers a 2nd Day Air AM service which offers morning delivery.[72][73]
UPS Next Day Air for shipments that require overnight service. UPS splits Next Day Air into three tiers:
Next Day Air Saver: guaranteed overnight shipping with afternoon delivery[74]
Next Day Air: guaranteed overnight delivery between 10:30 AM and noon[75]
Next Day Air Early: guaranteed overnight shipping by 8:30 AM for major US cities and 9:30 AM to most other destinations.[76]
UPS Express Critical: UPS' fastest service. Delivers to all 50 states, DC, and Puerto Rico by end of day.[77]
UPS also offers UPS SurePost, in which packages are handled by UPS in intermodal transit, and delivered last-mile by USPS.[78]
International Package operations include delivery to more than 220 countries and territories worldwide,[79] including shipments wholly outside the United States, as well as shipments with either origin or distribution outside the United States.
UPS splits its international shipping into a few services:
UPS Standard for shipments to Mexico and Canada[80]
UPS Worldwide Expedited for all international shipments usually delivered within 2-5 business days[81]
UPS Worldwide Saver, also for all international shipments usually delivered overnight to Canada, 2 Days to Mexico, Latin America, and Europe, and 3 or more days to the rest of the world, all by the end of the day.[82]
UPS Worldwide Express for more critical international shipments with similar time frames to Worldwide Saver. Delivers around 10:30 AM to Noon.
UPS Worldwide Express Plus for Worldwide Express shipments that need to arrive to their destination earlier in the morning.[83]
Supply Chain & Freight (UPS-SCS for UPS Supply Chain Solutions) includes UPS'forwarding andcontract logistics operations and other related business units. UPS' forwarding and logistics business provides services in more than 175 countries and territories worldwide and includes worldwide supply chain design, execution and management, freight forwarding and distribution, customs brokerage, mail and consulting services.
Other business units within this segment includeThe UPS Store and UPS Capital.[84]
Until 2021, this segment also included UPS Freight which offered a variety of less than truckload ("LTL") and truckload ("TL") services to customers in North America. UPS Freight was sold to TFI International in April 2021 and was renamedTForce Freight.[46][47]
In 2016, UPS employed approximately 444,000 staff: 362,000 in the U.S. and 82,000 internationally.[86] In 2023, approximately 330,000 UPS drivers, package handlers, and clerks are represented by theInternational Brotherhood of Teamsters with more than 50% of those being part-time workers.[87][88] In 2023, the average UPS full-time package delivery worker with more than four years experience was paid $95,000 per year.[87]
During theUnited Parcel Service strike of 1997, the company's only nationwide strike in its history, which lasted 16 days, Teamster PresidentRon Carey negotiated a new contract for workers.[89] In July 2023, before their contract was set to expire, a strike was threatened over union demands of increases in wages, benefits, and air conditioning in delivery vans.[90][91][92] A 10-day strike would have been the largest single-employer strike in US history and would have cost the US economy more than $7 billion.[93][91][88] The strike was called off after UPS agreed to increase starting pay for part-time workers to $21 per hour, in addition to other concessions.[88]UPS had previously announced the non-economic portions of the agreement had been settled, including to equip new delivery vans with air conditioning starting January 2024 combined with retrofitting existing vehicles with 2 fans, additional ventilation of the cargo area and shielding to reduce heat from the exhaust being transmitted to the cargo area of delivery vehicles. All tractor trailers are already equipped with AC.[94][95]
Historically, the bulk of competition for UPS came from inexpensive ground-based delivery services, such asParcel Post (USPS) or Choice Logistics. In 1998, FedEx expanded into ground parcel delivery through its acquisition ofRPS (formerly Roadway Package System), rebranding it asFedEx Ground in 2000. In 2003, DHL acquiredAirborne Express, expanding its operations in the United States.
In response to the expansion of FedEx and DHL, UPS partnered with the US Postal Service to offer UPS Mail Innovations,[98] a program that allows UPS to pick up mail and packages weighing under one pound separately from the main ground network and transfer them to a USPS center, or destination delivery unit (DDU),[99] for final distribution. This process is also known as zone skipping,[100] long used by parcel consolidators.[101] UPS also has a separate product called "SurePost" which uses the UPS Ground network to deliver packages weighing under 10 pounds to the nearest UPS Package Center, which transfers them to the USPS DDU for "final mile" delivery.[102]
More recently, the continued growth ofonline shopping, combined with increasing awareness of the role of transportation (including package delivery) on theenvironment, has contributed to the rise of emerging competition from niche carriers or rebranded incumbents. For instance, the US Postal Service claims "greener delivery" of parcels on the assumption that USPS letter carriers deliver to each US address, six days a week anyway, and therefore offer the industry's lowest fuel consumption per delivery. Other carriers, like ParcelPool.com,[103] which specializes in residential package delivery toAPO/FPO addresses, Hawaii, Alaska, Puerto Rico, and other US Territories, arose in response to increased demand from catalog retailers and online e-tailers for low-cost residential delivery services closely matching service standards normally associated with more expensive expedited parcel delivery.
In 2019, UPS sued in an attempt to force USPS to raise their prices, but was rejected by the Supreme Court.[104]
UPS operates over 119,000 delivery vehicles worldwide, ranging from bicycles to tractor-trailer trucks.[105] In a long-running company policy to avoid advertisement or endorsement of a vehicle manufacturer, all external manufacturer emblems and badging are removed when a vehicle enters service (whenever possible).
The typical lifespan of a UPS ground vehicle is 20–25 years (or more), lasting until the structural integrity is compromised. The company does not re-sell any of its ground vehicles. As such, retired vehicles are almost always stripped of reusable parts before being sent to be crushed/broken up. Prior to scrapping, UPS trucks and trailers have all company branding painted over and are assigned an ADA (Automotive Destruction Authorization) number and must be crushed under the supervision of UPS Automotive personnel, which records the vehicle's destruction. The only exception to this policy are vehicles taken off the road for internal company use; package cars (repainted white) are used for various purposes (typically at large hubs); older semi tractors sometimes see use asterminal tractors.
UPS refers to itsdelivery van as a "package car". Several designs and sizes are used by the company, dependent on routes and package volume; the distinct design of the rounded "bubble-nose" front hood and upper roofline was introduced in 1965. The bodies of the package cars are manufactured byMorgan Olson (Grumman Olson),Union City Body, andUtilimaster; while older vehicles were based on Ford or General Motors P-chassis, vehicles manufactured in the 21st century useFreightliner orWorkhorse chassis.
Until the end of the 20th century, UPS delivery vehicles were equipped with manual transmissions and steering, with automatic transmissions and power steering adopted by newer vehicles.
Most UPS Ground vehicles have no air conditioning, with the exception of tractor-trailers. This has been considered to be a contributing factor to heatstroke and other heat-related health problems in drivers who work in these vehicles for the entire shift.[107][108][109] Modern vehicles have improved ventilation systems.
On January 29, 2020, UPS invested inArrival and ordered 10,000 Generation 2 Electric Vehicles.[110]
In 2008, UPS started hiring bicycle delivery personnel inVancouver, Washington, and in several cities in Oregon (Portland,Salem,Corvallis,Eugene, andMedford).[111] In fall of 2018, UPS announced a new program in Seattle, Washington using pedal-assist electric cargo bikes (made by Portland-based Truck Trike) aroundPike Place and other congested downtown areas.[112][113] InAmsterdam UPS also uses Urban Arrow delivery bicycles for delivery via a grantedconcession.[114]
UPS e-drive electric-assisted cargo tricycle in Hamburg, Germany
UPS e-drive electric-assisted cargo tricycle in Cologne, Germany
The fourth-largest cargo airline worldwide, UPS Airlines flies to over 800 destinations worldwide (the most of any airline, cargo or passenger). Formed in 1988, the airline is headquartered in Louisville, Kentucky (home toWorldport, its worldwide air hub) with additional hubs in the United States located inOntario, California,Dallas, Texas,Rockford, Illinois andPhiladelphia.[105] Outside of North America, a hub inCologne, Germany services Europe;[115] in Asia, UPS Airlines operates a facility in Hong Kong and two hubs in mainland China.[105]
Consisting of a fleet of nearly 300 aircraft (as of 2025),[116][117] the airline competes directly againstFedEx Express, facilitating air shipments by the company in over 200 countries and territories worldwide.[115]
UPS Flight Forward is a subsidiary which was formed in July 2019[118] and approved by FAA for Part 135 Standard certification, first ever to receive this specific type of certification. The FAA's Part 135 Standard certification allows company to operate an unlimited number of drones of any size (even allowing the cargo to exceed 55 pounds) even with an unlimited number of remote operators in command.[119]
The brown color that UPS uses on its vehicles and uniforms is calledPullman brown. Company founder James E. Casey originally wanted company vehicles to use a yellow paint scheme, but one of his partners, Charlie Soderstrom, stated that a yellow vehicle would be hard to keep clean and thatPullman railroad cars were brown for just that reason.[11]
During the 2000s, the company used the familiarity of its color scheme in an advertising slogan:"What can Brown do for you?"[120]
UPS commissioned brand consultancy FutureBrand to develop its own font,UPS Sans, for use in marketing and communication material.UPS Sans was created by slightly altering certain parts ofFSI FontShop International's fontFF Dax without permission. This has resulted in an agreement between FSI FontShop International and FutureBrand to avoid litigation.[121]
UPS truck illegally parked in a bike lane in Philadelphia
UPS has been criticized for its treatment of its workforce, including providing inadequate protections andsick leave during theCOVID-19 pandemic.[122]
The company has also been subject to perennial criticism for damaged, late, or otherwise mishandled packages.[123][124][125]
Safe streets activists have attacked UPS, along with other parcel delivery services, for frequently illegally parking their vehicles in bike lanes while making deliveries, a practice that endangers cyclists.[126][127][128] They were sued over it in New York in 2015,[129][130][131] and criticized alongside peers in a letter fromWashington, D.C.'s transportation agency in 2018.[132]
UPS received a "striding" rating of 80 points out of 100 totals on the environmental scorecard by the Climate Counts Group for its efforts to lessen the company's impact on the environment.[138] UPS has also been awarded the Clean Air Excellence Award by theUnited States Environmental Protection Agency because of the alternative fuel program it has developed.[139] A few years later, the Environmental Protection Agency fined the UPS for not following environmental laws.[140]
In October 2009, UPS became the first small-package carrier to offer customers the chance to buycarbon offsets to neutralize the greenhouse gas emissions generated by the transport of their packages. Although initially only available on ups.com and to high-volume shippers, they are now widely available through UPS shipping systems and UPS Ready third-party shipping systems.[141][142]
UPS reported TotalCO2e emissions (Direct + Indirect) for the twelve months ending December 31, 2020, at 16,500 Kt (+1,546/+10% y-o-y).[143] UPS aims to reach net zero emissions by 2050.[144]
UPS's annual Total CO2e Emissions - Market-Based Scope 1 + Scope 2 (in kilotonnes)
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