UPS earnings report is rough… anyone else seeing problems?

UPS earnings were bad. As a customer, it sucks to see them struggling since I want to support union labor, but honestly, their automated customer service is awful—you can’t reach a real person. I stopped using them completely because of it, and I doubt I’m the only one.

Then there’s the Amazon situation… just no.

Hate to say it, but I think the CEO needs to go. UPS should be competing with FedEx and USPS, not shrinking.

FedEx isn’t exactly crushing it either.

Wei said:
FedEx isn’t exactly crushing it either.

I run an eCommerce business, and UPS has been the most reliable carrier by far.

Wei said:
FedEx isn’t exactly crushing it either.

At least FedEx can find my house and fix mistakes when I call.

Arlo said:

Wei said:
FedEx isn’t exactly crushing it either.

At least FedEx can find my house and fix mistakes when I call.

Good luck getting a human at FedEx though. Last time I tried, I hit a dead end every time.

@Ari
Yeah, but if you dig, you can find numbers for regional sorting facilities where actual people work. I haven’t had that luck with UPS.

@Ari
Call a FedEx Office store. They can connect you directly.

Amazon was 11.8% of UPS’s revenue in 2023 (according to their annual report). I’m curious to see what that number looks like for 2024… either way, not looking good.

Peyton said:
Amazon was 11.8% of UPS’s revenue in 2023 (according to their annual report). I’m curious to see what that number looks like for 2024… either way, not looking good.

The real question isn’t just revenue, but profitability. Amazon probably negotiated such a good deal that it wasn’t worth it for UPS anymore. Seems like they finally said ‘enough is enough.’

UPS is leaning on automation because union labor is expensive. Paying drivers $170K total compensation isn’t sustainable when competitors like FedEx and Amazon are paying way less.

Remy said:
UPS is leaning on automation because union labor is expensive. Paying drivers $170K total compensation isn’t sustainable when competitors like FedEx and Amazon are paying way less.

That’s only part of it. UPS is also paying into traditional pensions and healthcare for those workers.

And here’s the thing—every job they cut means less money going into those union benefits. The younger warehouse workers, who cost UPS the least in medical expenses, are the first to go.

I wouldn’t be surprised if this is a major issue in their next contract negotiations. No way the current administration lets a massive strike happen.

I used to only ship UPS from my eBay store, but their rates after COVID went way up. USPS is 50-60% cheaper now, so I switched completely.

UPS in my area is a mess. Their warehouse looks like a warzone (sandbags, pallets, the whole deal), and package theft is rampant. The fact that corporate hasn’t done anything about it makes me think the company is just poorly run at a high level.

I’ve even thought about shorting their stock after my experience, but I don’t have the risk tolerance.

@Weston
Not surprising. I worked as a seasonal UPS driver and was shocked at how disorganized everything was.

They lose, misplace, and damage packages constantly. Package handlers steal as much as they can get away with. And somehow, everyone is still getting paid well.

Honestly, the new CEO is probably going to start closing facilities and automating as fast as possible. Even with the union, if the job doesn’t exist anymore, people will get laid off permanently.

Terrible company culture. Stay away.

Their service keeps getting worse. If they can’t compete, they’re screwed.

I’ve paid for UPS next day air four times recently, and all four times it was late. What’s the point of paying a premium when they don’t deliver? I’m done with them.

UPS is awful. Their drivers don’t even read addresses. I gave up on them last summer.

And don’t even get me started on UPS Stores. They’re useless.

How are they failing to compete when USPS takes 5 days to deliver a simple document, and FedEx costs a fortune?

Wait… UPS has stock??