History of UPS: a (more than) century-old company that adapts to eCommerce

If we exclude the postal service companies dependent on the Public Administrations, it is rare to find century-old companies in this sector. In case of is the honorable exception that breaks the rule. This American company, founded in 1906 as a local business, it established itself in its sector in a few years. Since then, this West Coast-based company has expanded throughout the world and, today it offers a global messaging service. In this article, we will first review the history of UPS. Later, we will talk about the various options it offers for electronic commerce.

1906: UPS history begins

UPS’s journey begins in , when, with $100 borrowed from a friend, Jim Casey found the American Messenger Company which, in principle, offered services in Seattle. The success of the business meant that, in a few years, it already had a dominant position in the market.

Although UPS grew thanks to the fact that the telephone had a marginal presence, it knew how to readapt its market niche towards the parcel for companies. Now, it should be noted that UPS has always prioritized customer service, in addition to offering low prices. The rational organization of the package in destinations allowed to reduce costs. In fact, the state postal service was a client of the company.

Expansion after World War II

In 1919 They took their present name, which stands for United Parcel Service (literally, “Unified Parcel Service”). In addition, they expanded their radius of action to other states on the west coast, such as California.

After World War II, UPS decided to offer parcel services to individuals and businesses alike. Although it had the obstacles of the ICC (International Chamber of Commerce) to compete on equal terms with the United States postal service, in the 1970s was obtaining authorizations to operate throughout the country.

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90s: technological revolution in UPS

In the 1990s, the time came for the integration of new communication tools at UPS, with the creation of UPSNet, a global electronic data network, providing an information management pathway for processing and delivering packages internationally. As the company itself explains, “UPSnet uses more than 900,000 kilometers of communication lines and a satellite that links 1,300 UPS distribution sites in 46 countries.” Between 1986 and 1991, UPS spent no less than $1.5 billion in technology upgrades

Today, UPS is a comprehensive logistics services operator with more than 395,000 employees in the United States and 77,000 in the rest of the world, including Spain.

2001: purchase of Mail Boxes

In 2001, UPS took control of Mail Boxes Etc., Inc., the world’s largest franchisee of retail shipping, postal and business service centers. In the United States alone, approximately 3,000 were installed in two years under the name “The UPS Store” and began offering low-priced shipping rates, which consolidated their expansion.

eCommerce enters UPS history

The history of UPS is one of continuous adaptation to new challenges. The which began to develop at the end of 1990, was a new reality to which to respond.

In this field, UPS offers a number of solutions for all audiences: On the one hand, you have the possibility that the customer decides if he wants to receive the package at home or at a delivery point of Kiala’s network (kiosks, local businesses, etc.). Secondly, it offers you the possibility of carrying out a punctual follow-up. Finally, e-commerce solutions allow you manage returns no added cost.

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UPS offers specific solutions for SMEs and eCommerce operators. The criteria for establishing fixed rates are the delivery time, the volume of shipments and the average distances to be traveled. In any case, UPS also integrates several shipping management tools that save the business owner time and money. On the other hand, if the clients belong to UPS My Choice, have the ability to customize circumstances and time of delivery. Therefore, there are ways to improve from the perspective of the employer and the client that we advise you to follow.

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