Here are a few analogies for United Parcel Service (UPS):

• Like FedEx.
• The private, global equivalent of the U.S. Postal Service.
• Imagine the Amazon delivery system, but for any company or individual worldwide.

• Package Delivery Services: Provides time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services, both domestically and internationally.
• Freight Forwarding: Offers international air and ocean freight forwarding services.
• Customs Brokerage: Assists clients with customs clearance and compliance for international shipments.
• Logistics and Distribution Solutions: Includes distribution, post-sales support, and specialized supply chain solutions for industries such as healthcare.
• Truckload Brokerage: Arranges full truckload transportation services for businesses.
• Technology Solutions: Develops and provides shipping, visibility, and billing technologies to enhance logistics management.
• Financial and Insurance Services: Offers financial and insurance products related to its transportation and logistics operations.
• Consulting Services: Provides expert advice on logistics and supply chain optimization.

United Parcel Service (UPS) primarily sells its services to other companies (Business-to-Business or B2B) rather than individuals. Due to the vast and diverse nature of its customer base, spanning virtually all industries globally, UPS does not publicly disclose the names of its individual major customer companies. Its services are integral to the supply chains of countless businesses worldwide.

However, the major categories of companies that rely heavily on UPS for their operations include:

• E-commerce Businesses and Retailers: Companies of all sizes, from large online marketplaces to small direct-to-consumer brands, use UPS for shipping products to their customers (both domestically and internationally).
• Manufacturers and Distributors: Businesses across various sectors (e.g., automotive, electronics, consumer goods, industrial products) utilize UPS for transporting raw materials, components, finished goods, and managing complex supply chains.
• Healthcare and Life Sciences Companies: As explicitly mentioned in the company description, this sector relies on UPS for specialized logistics, including temperature-controlled shipping, urgent deliveries, and compliance with strict regulations for pharmaceuticals, medical devices, and other sensitive materials.
• Small and Medium-sized Businesses (SMBs): A broad array of SMBs across virtually every industry use UPS for their shipping needs, from documents and small packages to freight services.

While individuals do use UPS for personal shipping (Consumer-to-Consumer or C2C) and returning items to businesses, the core of UPS's revenue and operational focus lies in serving the complex logistics and shipping requirements of other businesses.

Boeing (BA)

Carol Tomé, Chief Executive Officer

Carol Tomé has served as the Chief Executive Officer of UPS since June 2020, making her the first female CEO and the first external hire for the role in the company's history, although she had been a member of the Board since 2003. Before joining UPS, Ms. Tomé spent nearly two decades as the Executive Vice President and Chief Financial Officer of The Home Depot, from 1995 to 2019. During her tenure at The Home Depot, she was instrumental in guiding the company through the financial recession and housing crisis, doubling sales to over $108 billion, and achieving a 450% increase in shareholder value. Her early career included roles as a commercial lender at United Bank of Denver (now Wells Fargo) and leadership positions at Johns-Manville Corporation and Riverwood International Corporation.

Brian Dykes, Executive Vice President and Chief Financial Officer

Brian Dykes was appointed Executive Vice President and Chief Financial Officer of UPS in July 2024. He is a veteran of UPS with 25 years of service, having held various senior roles within the company's finance and accounting, corporate treasury, mergers and acquisitions, business intelligence, and business development functions, both in the United States and internationally. Prior to his current role, he served as Senior Vice President, Global Finance and Planning since April 2023.

Nando Cesarone, Executive Vice President and President U.S.

Nando Cesarone serves as the Executive Vice President and President U.S. for UPS, where he is responsible for overseeing the company's U.S. small package, transportation, and airline operations. He began his career at UPS in 1990 as a preloader, benefiting from the company's tuition reimbursement program, and later became a package car driver. His extensive international experience with UPS includes serving as President of UPS International, President of UPS Europe, and President of the Asia Pacific Region, where he led expansion efforts in emerging markets and China.

Kate Gutmann, Executive Vice President & President International, Healthcare and Supply Chain Solutions

Kate Gutmann holds the position of Executive Vice President & President International, Healthcare and Supply Chain Solutions at UPS. She is responsible for global sales, solutions, and customer engagement strategies, and also oversees the UPS Capital and The UPS Store business units worldwide. Ms. Gutmann started her career with UPS in 1989 as a marketing intern while studying at Siena College. She has progressed through numerous sales and marketing roles with increasing responsibility, including President of Worldwide Sales and Vice President of Marketing for the UPS Europe, Middle East, and Africa Region.

Bala Subramanian, Executive Vice President & Chief Digital and Technology Officer

Bala Subramanian is the Executive Vice President & Chief Digital and Technology Officer at UPS. He joined the company in 2020, bringing significant expertise in digital transformation, technology innovation, and strategic leadership. His career prior to UPS included various leadership roles with several major corporations.

The key risks to United Parcel Service (UPS) include intense competition and shifts in the e-commerce landscape, labor costs and union relations, and fuel price volatility and rising operating expenses.

Competitive Landscape and E-commerce Shifts

UPS operates in a highly competitive industry with established rivals such as FedEx, DHL Express, and national postal services. A significant and evolving threat comes from Amazon Logistics, which has been rapidly expanding its sorting and distribution capabilities and handling a growing portion of its own package deliveries, with the potential to offer third-party services in the future. This intense competition necessitates continuous investment in network efficiency, technological innovation, and service diversification to maintain market share. In response to these shifts, UPS has been strategically reducing its reliance on Amazon's package volume and pivoting towards higher-margin segments like small and medium-sized businesses (SMBs) and healthcare logistics.

Labor Costs and Union Relations

UPS has a large, unionized workforce, primarily represented by the Teamsters. Labor costs are a significant challenge, with recent collective bargaining agreements leading to substantial increases in expenses. The company has faced and continues to navigate potential labor disputes, including strike threats, which can lead to operational disruptions and increased costs. Efforts by UPS to reduce its workforce through voluntary buyout plans, aimed at improving profitability and aligning staffing with reduced package volumes (particularly from Amazon), have also created tension and disputes with the union, which views these actions as potential violations of existing contracts.

Fuel Price Volatility and Operating Expenses

As a transportation and logistics company operating a large fleet of vehicles and aircraft, UPS is highly sensitive to fluctuations in fuel prices. While UPS implements fuel surcharges to offset these costs, significant or sustained increases in diesel and jet fuel prices directly impact operating expenses. These increased costs can put pressure on profitability and may necessitate passing on higher shipping costs to customers, potentially affecting demand for UPS's services. Beyond fuel, rising operating expenses generally, including compensation and benefits, also contribute to financial pressures.

The clear emerging threat for United Parcel Service (UPS) is the continued and extensive expansion of major e-commerce retailers, particularly Amazon, into developing and operating their own in-house logistics and delivery networks. Amazon, a significant former customer of UPS, has heavily invested in its own fleet of aircraft, trucks, vans, and last-mile delivery services, effectively internalizing a substantial volume of packages that were previously handled by traditional carriers like UPS. This trend represents a direct competitive challenge, as a major source of parcel volume is diverted to an internal network, significantly altering the competitive landscape and putting pressure on UPS's package delivery segments by removing a large customer and establishing a formidable new competitor.

United Parcel Service (UPS) operates in several large addressable markets for its main products and services:

• Global Courier, Express, and Parcel (CEP) Market: This market, which includes both domestic and international package delivery, was valued at approximately USD 956.19 billion in 2025. It is projected to grow significantly, reaching an estimated USD 2,976.01 billion by 2033.
• U.S. Domestic Parcel Market: For its U.S. domestic package delivery services, the market generated USD 196 billion in revenue in 2025.
• Global Freight Forwarding Market: The global freight forwarding market, encompassing international air and ocean freight forwarding, was valued at USD 230.68 billion in 2025. This market is projected to grow to approximately USD 365.15 billion by 2035.
• Global Third-Party Logistics (3PL) Market: This broad market, covering services such as international air and ocean freight forwarding, customs brokerage, distribution and post-sales, and truckload brokerage, was valued at USD 1.6 trillion in 2025. The 3PL market is expected to expand to USD 4.3 trillion by 2035.
• Global Healthcare Third-Party Logistics Market: For its specialized supply chain solutions to the healthcare and life sciences industry, the global healthcare third-party logistics market was estimated at USD 261.39 billion in 2024. This specific segment is projected to grow to USD 406.36 billion by 2030.

United Parcel Service (UPS) is strategically positioning itself for future revenue growth over the next 2-3 years by focusing on several key drivers:

1. Expansion in Higher-Margin Markets: UPS is prioritizing growth in premium segments such as healthcare logistics and small and medium-sized businesses (SMBs/SMEs). This involves reducing lower-margin volume, for instance, by significantly decreasing its shipments for a major customer like Amazon, to concentrate on more profitable package types. The company aims to become the world's leading provider of complex healthcare logistics and has demonstrated strong growth in this area, targeting $20 billion in healthcare revenue by 2026.
2. Network Optimization and Automation: Under its "Network of the Future" initiative, UPS is investing heavily in optimizing and automating its core integrated network. This strategy is designed to lower the cost to serve, enhance efficiency, and support anticipated volume growth. Plans include more than tripling the number of automated buildings in its network by the end of 2028, largely through implementing automation projects in existing facilities, and reconfiguring its U.S. network to yield substantial savings.
3. Improved Revenue Quality and Strategic Pricing: UPS is focused on driving higher revenue per piece by implementing average rate increases across its ground, air, and international services. This emphasis on "revenue quality" is a core part of its strategy, which includes adjusting customer volume to focus on more profitable package types and insourcing services like SurePost to improve efficiency and control over final-mile delivery.
4. International Market Expansion: The company continues to target growth in high-growth international markets. This involves efficiently connecting domestic and export customers to its global network, leveraging its established presence in over 200 countries and territories.

Share Repurchases

• In January 2023, UPS approved a new share repurchase authorization for $5.0 billion of Class A and Class B common stock, replacing a previous 2021 authorization.
• UPS repurchased $2.2 billion in shares in 2023, $500 million in 2024, and $1 billion in 2025.
• As of December 31, 2024, $2.3 billion remained available under the 2023 share repurchase authorization.

Outbound Investments

• UPS acquired Frigo-Trans in January 2025 and Andlauer Healthcare Group (AHG) in November 2025, with recent strategic mergers and acquisitions focusing on healthcare logistics.
• The company sold Coyote in the third quarter of 2024.

Capital Expenditures

• Capital expenditures were $4.194 billion in 2021, $4.769 billion in 2022, $5.158 billion in 2023, $3.909 billion in 2024, and $3.685 billion in 2025.
• Expected capital expenditures for 2026 are approximately $3.0 billion, marking a 10-year low.
• The primary focus of capital expenditures includes network reconfiguration, automation investments, and capacity rightsizing, emphasizing a leaner, more productive network.