UPS charges more per package, even as fewer pass through its hands
A logistics giant finds new ways to make money without shipping more stuff.
The story
UPS raises full-year revenue guidance, citing higher pricing per package despite lower overall volume, with CEO Carol Tomé emphasizing 'better is truly better than bigger.'
Source: wwd.com
Our reading
UPS is charging more per package than ever, even as fewer packages pass through its hands. The company’s CEO insists this is a win, but they’re now using RFID tags at customer locations—because nothing says ‘effortless’ like having your returns tracked by sensors before you even drop them off.
The logistics giant is betting that customers will pay more for the same service, and that the added tracking will make the whole thing feel less like a burden. It’s the same logic that makes a luxury hotel charge you for a towel you already brought, but somehow still call it ‘premium.’
UPS is now so confident in its pricing strategy that it’s replacing manual scanners with RFID tech, which is basically the same thing as upgrading from a paper map to a GPS—except the GPS is also watching you.
