Is E-Commerce Growth Actually Hurting United Parcel Service? - Motley Fool
A lot has been made of the way business-to-consumer e-commerce demand is surging, and how package delivery companies like United Parcel Service and FedEx Corporation will benefit from it in the long term. However, it hasn't been smooth sailing for those shippers just yet. Volumes have increased strongly during recent holiday seasons, putting pressure on both companies as they attempt to deal with the demand. Consequently, both companies have taken costly measures to improve their abilities to cope with peak. Has peak demand affected profitability, particularly in the fourth quarter?
A lot has been made of the way business-to-consumer e-commerce demand is surging, and how package delivery companies like United Parcel Service and FedEx Corporation will benefit from it in the long term. However, it hasn't been smooth sailing for those shippers just yet. Volumes have increased strongly during recent holiday seasons, putting pressure on both companies as they attempt to deal with the demand. Consequently, both companies have taken costly measures to improve their abilities to cope with peak. Has peak demand affected profitability, particularly in the fourth quarter?
