UPS UPS beat on first-quarter earnings before the bell this morning with earnings per share of $2.77 and revenue of $22.91 billion. The company is not providing 2021 guidance. Right now, Americans are depending on package deliveries more than ever as e-commerce spikes during the pandemic and ordering online becomes more integrated into daily life. UPS benefits from the heightened demand and must expand to meet it.
But what happens to UPS as giant companies like Amazon or Target TGT begin to bring more delivery in-house? Amazon AMZN subcontracts fleets of branded vans to deliver its packages, bypassing UPS. Target announced recently that it would expand the use of Shipt from same-day grocery delivery to more packages – the first step towards its own logistics chain. And, as more Americans are vaccinated and the end of lockdowns is in sight, will people return to old habits and UPS see less demand? The company may have to weather another sea change soon.
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