Does everyone know that UPS has an equity investment in a company called
Deliv? They primarily serve the same-day delivery market so it's not really that big of a leap to see this expanding. Deliv already has contracts with thousands of retailers and are already doing this with independent contractors.
Take a look at the list of who they already make deliveries for - lots of familiar names of companies that still ship with UPS but also companies that no longer use UPS (or FedEx) to the extent they use to.
Now instead of that Macy's box being shipped through UPS, it can go direct to the consumer right from Macy's - no need for a UPS driver. Times are changing, people want their stuff faster and UPS can either adapt to the market or retailers will simply find a company that can meet their needs and a price they, and their customers, are willing to pay. No doubt, UPS drivers are the hardest working in the industry as well as the best compensated. Can this go on forever while the market is trending in the opposite direction? UPS has lots of investments in emerging technology companies and Deliv is just one example.
Somewhat related to this is an article titled
UPS Drivers: The GOLD Standard! The word gold is capitalized for a reason. The author makes the following observation:
"
Last Wednesday, 9/13/17, I received an e-commerce delivery from a contracted delivery driver. He was un-uniformed, wearing a T-shirt, shorts, and sneakers. The delivery was completely unremarkable and I was a satisfied consumer. Maybe this driver made $12 an hour and probably has no benefits. My UPS driver makes between $25 and $35 per hour, has outstanding benefits and a generous pension. In other words, my UPS driver makes a living wage and that is why I believe my UPS driver is probably going away. I simply do not see how UPS can continue to support their drivers with generous salary and benefits while their competition pays contracted drivers less than half of what a UPS driver earns."