Executive Briefings

UPS Tests Drone Deliveries, Eyes Future Price Changes

Package delivery company United Parcel Service Inc says it will consider raising prices across the board in coming years to offset pressure on margins, particularly from the rising costs of delivering packages to e-commerce customers.

UPS Tests Drone Deliveries, Eyes Future Price Changes

"We... always have to be diligent about getting the right return," particularly as costs rise, Richard Peretz, the company's chief financial officer, said at an investor event.

His comments came last week after the company tested home delivery by drone in Lithia, Florida, the first step in what it hopes will be more automated — and cheaper — deliveries in rural areas.

UPS is grappling with lower margins for e-commerce, which have dented earnings. Businesses typically get more packages per stop than residences, making delivery to individual homes more expensive. Drones could be one way to reduce those costs.

In last week's test, a drone launched from the roof of a UPS vehicle flew autonomously toward its destination, dropped a package and then returned to the vehicle as the driver continued on a delivery route.

Read Full Article

"We... always have to be diligent about getting the right return," particularly as costs rise, Richard Peretz, the company's chief financial officer, said at an investor event.

His comments came last week after the company tested home delivery by drone in Lithia, Florida, the first step in what it hopes will be more automated — and cheaper — deliveries in rural areas.

UPS is grappling with lower margins for e-commerce, which have dented earnings. Businesses typically get more packages per stop than residences, making delivery to individual homes more expensive. Drones could be one way to reduce those costs.

In last week's test, a drone launched from the roof of a UPS vehicle flew autonomously toward its destination, dropped a package and then returned to the vehicle as the driver continued on a delivery route.

Read Full Article

UPS Tests Drone Deliveries, Eyes Future Price Changes