United Parcel Service, Inc. (UPS) is a global leader in logistics, offering a broad range of solutions including the transportation of packages and freight, the facilitation of international trade, and the deployment of advanced technology to manage the world of business more efficiently. Headquartered in Atlanta, Georgia, UPS operates one of the largest and most trusted logistics networks, serving customers in over 200 countries and territories. With a customer-first, people-led, and innovation-driven strategy, UPS is committed to delivering packages with precision, reliability, and sustainability, making it a cornerstone of global commerce.
Table of Contents
Company Profile
UPS, founded in 1907, has grown from a small messenger company in Seattle, Washington, to a Fortune 500 corporation with a workforce of approximately 500,000 employees worldwide. The company operates through a sophisticated global integrated network, leveraging technology to enhance operational efficiency and customer satisfaction. UPS’s mission is to make the world work better by delivering what matters most to its customers, whether they are small businesses, large enterprises, or individual consumers.
In 2024, UPS reported consolidated revenue of approximately $91.3 billion, reflecting its robust operations across three primary business segments: U.S. Domestic Package, International Package, and Supply Chain Solutions. The company returned $5.9 billion to shareowners, including $5.4 billion in cash dividends and $500 million in share repurchases, while investing $3.9 billion in capital expenditures to enhance its network and technology infrastructure.
UPS’s commitment to sustainability is evident in its environmental initiatives, aiming to reduce carbon emissions and enhance operational efficiency through innovations like RFID technology and smart facility designs. The company’s governance structure, led by a 92% independent board with an average tenure of 8.4 years, ensures robust oversight and alignment with shareowner interests.
Business Segments
UPS operates through three primary business segments, each contributing to its global logistics capabilities. Below is a detailed breakdown of these segments, including their revenue contributions for 2024.
1. U.S. Domestic Package
- Description: The U.S. Domestic Package segment is the largest contributor to UPS’s revenue, focusing on the delivery of packages within the United States. This segment handles both air and ground services, catering to a wide range of customers, from small and medium-sized businesses (SMBs) to large e-commerce enterprises. Key initiatives in 2024 included capturing growth through additional e-commerce customers and SMBs, supported by network enhancements like the “Fit to Serve” strategy, which optimized operational efficiency.
- Revenue Contribution (2024): Approximately $63.7 billion, representing 69.8% of total consolidated revenue.
- Key Metrics:
- Volume: Returned to annual average daily volume growth, driven by e-commerce and SMB demand.
- Operating Profit: Non-GAAP adjusted operating profit decreased by $967 million compared to 2023, with a non-GAAP adjusted operating margin of 7.5%, down 160 basis points.
- Cost Management: Implemented cost reductions through network reconfiguration and efficiency initiatives, partially offset by increases in property rents and temporary structural costs.
- Strategic Focus: Enhancing same-day pickup services, expanding access points like UPS drop boxes and Access Point locations, and leveraging automation to improve delivery speed and reliability.
2. International Package
- Description: The International Package segment manages package delivery services across more than 200 countries and territories outside the U.S. This segment includes air and ground transportation, with a focus on export and import services. In 2024, operations were impacted by one less operating day compared to 2023, but volume growth was anticipated for 2025 due to increased demand and pricing initiatives.
- Revenue Contribution (2024): Approximately $17.2 billion, representing 18.8% of total consolidated revenue.
- Key Metrics:
- Volume: Average daily volume remained stable, with expected increases in 2025 driven by global demand.
- Operating Expenses: Decreased due to cost optimization, though partially offset by currency translation impacts.
- Fuel Surcharges: Expected to increase in the first half of 2025 due to volume growth, despite lower anticipated fuel prices.
- Strategic Focus: Strengthening global connectivity through strategic acquisitions, such as a Germany-based cold-chain logistics provider, and maintaining operations in challenging regions while suspending activities in Ukraine.
3. Supply Chain Solutions
- Description: The Supply Chain Solutions segment provides logistics and supply chain management services, including freight forwarding, truckload brokerage, and specialized solutions like cold-chain logistics. This segment includes recent acquisitions like Happy Returns (2023) and Roadie, which have bolstered UPS’s capabilities in returns management and same-day delivery. In 2024, revenue growth was driven by volume increases at Roadie and the full-year impact of Happy Returns.
- Revenue Contribution (2024): Approximately $10.4 billion, representing 11.4% of total consolidated revenue.
- Key Metrics:
- Revenue Growth: Increased by $163 million, driven by volume growth and acquisitions.
- Operating Profit: Non-GAAP adjusted operating profit decreased by $90 million, with a non-GAAP adjusted operating margin of 8.0%, down 60 basis points.
- Impairments: Recorded immaterial impairments in 2024, primarily within Supply Chain Solutions.
- Strategic Focus: Expanding technology-driven solutions, such as digital platforms for optimized delivery, and investing in multi-client and dedicated facilities near transportation hubs to support rapid delivery.
Revenue Breakup by Segment (2024):
Segment | Revenue ($B) | Percentage of Total Revenue |
---|---|---|
U.S. Domestic Package | 63.7 | 69.8% |
International Package | 17.2 | 18.8% |
Supply Chain Solutions | 10.4 | 11.4% |
Total | 91.3 | 100% |
Products and Services
UPS offers a wide array of products and services tailored to meet the needs of its diverse customer base. Below is a detailed list of key offerings, with revenue contributions where applicable.
1. Package Delivery Services
- Description: Includes air and ground delivery services for both domestic and international markets. Services range from next-day air to deferred ground delivery, with options for same-day pickup seven days a week.
- Revenue Contribution (2024): Predominantly covered under U.S. Domestic Package ($63.7 billion, 69.8%) and International Package ($17.2 billion, 18.8%).
- Details:
- U.S. Domestic: Offers services like UPS Next Day Air, UPS Ground, and UPS SurePost for cost-effective delivery.
- International: Includes export services (e.g., UPS Worldwide Express) and import services, with a focus on premium and economy options.
- Access Points: Provides over 100,000 access points globally, including UPS drop boxes, Access Point locations, and retail partnerships.
2. Freight Forwarding
- Description: Provides air, ocean, and ground freight forwarding services, including customs brokerage and trade management. UPS operates as a non-vessel operating common carrier for ocean freight.
- Revenue Contribution (2024): Included in Supply Chain Solutions ($10.4 billion, 11.4%).
- Details: Supports global trade with services like customs clearance, freight consolidation, and multimodal transportation.
3. Logistics and Distribution
- Description: Offers end-to-end supply chain solutions, including warehousing, inventory management, and distribution. UPS operates multi-client and dedicated facilities strategically located near air and ground hubs.
- Revenue Contribution (2024): Included in Supply Chain Solutions ($10.4 billion, 11.4%).
- Details: Enhanced by acquisitions like Happy Returns for streamlined returns and Roadie for same-day delivery solutions.
4. Technology-Driven Solutions
- Description: Includes digital platforms like Delivery Solutions (acquired in 2022) for optimized delivery and tracking. UPS leverages RFID technology in its Smart Package Smart Facilities initiative to enhance visibility and efficiency.
- Revenue Contribution (2024): Integrated across all segments, with specific contributions in Supply Chain Solutions.
- Details: Provides customer-specific solutions integrating multiple tasks into a single performance obligation, recognized over time as services are performed.
5. Specialized Services
- Description: Includes cold-chain logistics for healthcare and other temperature-sensitive shipments, as well as truckload brokerage and transportation management.
- Revenue Contribution (2024): Included in Supply Chain Solutions ($10.4 billion, 11.4%).
- Details: Strengthened by the 2024 acquisition of a Germany-based cold-chain logistics provider for $440 million.
Revenue Breakup by Product Type (2024):
Product/Service Type | Revenue ($B) | Percentage of Total Revenue |
---|---|---|
Package Delivery (Domestic) | 63.7 | 69.8% |
Package Delivery (International) | 17.2 | 18.8% |
Freight Forwarding & Logistics | 10.4 | 11.4% |
Total | 91.3 | 100% |
Company History
UPS’s journey from a small messenger service to a global logistics powerhouse spans over a century, marked by innovation, expansion, and strategic adaptation.
- 1907: Founded as the American Messenger Company in Seattle, Washington, by James E. Casey with a $100 loan. The company focused on delivering messages and small packages on foot or by bicycle.
- 1913: Renamed United Parcel Service, reflecting its expansion into package delivery. Began consolidating deliveries to optimize efficiency, a precursor to its modern hub-and-spoke model.
- 1919: Expanded beyond Seattle to Oakland, California, establishing its first operations outside Washington.
- 1930s-1940s: Grew into a major urban delivery service, focusing on retail store deliveries and introducing the iconic brown delivery trucks.
- 1950s-1960s: Expanded nationwide, receiving common carrier status from the Interstate Commerce Commission, allowing it to operate across state lines. Introduced the “Brown” brand identity.
- 1975: Became the first package delivery company to serve every address in the continental U.S., a significant milestone in its domestic dominance.
- 1980s: Entered the air delivery market with UPS Next Day Air, acquiring its first aircraft and establishing air hubs.
- 1990s: Expanded internationally, acquiring operations in Europe, Asia, and Latin America. Launched UPS.com, marking its entry into e-commerce logistics.
- 1999: Went public on the New York Stock Exchange (NYSE: UPS), raising capital to fuel global expansion.
- 2000s: Strengthened its supply chain capabilities through acquisitions like Mail Boxes Etc. (rebranded as The UPS Store) and expanded freight forwarding services.
- 2010s: Focused on technology and sustainability, introducing innovations like ORION (On-Road Integrated Optimization and Navigation) to optimize delivery routes and reduce emissions.
- 2020s: Accelerated digital transformation with acquisitions like Delivery Solutions (2022) and Happy Returns (2023). In 2024, entered an agreement to acquire a Germany-based cold-chain logistics provider, enhancing its healthcare logistics capabilities. Implemented the “Fit to Serve” and “Network Reconfiguration” initiatives to optimize operations and reduce costs.

Brands
UPS operates under several brands that enhance its service offerings and market presence. Below is a detailed list with their contributions to the company’s operations.
1. UPS (Core Brand)
- Description: The primary brand encompassing package delivery, freight forwarding, and logistics services globally. Known for its reliability, brown trucks, and “What can Brown do for you?” campaign.
- Revenue Contribution (2024): Represents the entirety of UPS’s $91.3 billion revenue across all segments.
- Details: Synonymous with the company’s core operations, covering domestic and international package delivery, logistics, and technology solutions.
2. The UPS Store
- Description: A network of retail locations offering shipping, packing, and mailbox services, primarily for small businesses and consumers. Originally Mail Boxes Etc., it was rebranded after acquisition in 2001.
- Revenue Contribution (2024): Included in Supply Chain Solutions ($10.4 billion, 11.4%).
- Details: Operates over 5,000 locations in the U.S., providing localized access to UPS services and supporting SMBs.
3. Happy Returns
- Description: A technology-focused company acquired in 2023, specializing in returns management and reverse logistics. Enhances UPS’s e-commerce offerings by streamlining returns for retailers and consumers.
- Revenue Contribution (2024): Contributed to Supply Chain Solutions revenue growth ($10.4 billion, 11.4%).
- Details: Integrates with UPS’s network to offer box-free, label-free returns at various access points.
4. Roadie
- Description: A same-day delivery platform acquired by UPS, focusing on flexible, on-demand delivery solutions for businesses and consumers.
- Revenue Contribution (2024): Contributed to Supply Chain Solutions revenue growth ($10.4 billion, 11.4%).
- Details: Supports UPS’s strategy to capture e-commerce growth, offering rapid delivery options for last-mile logistics.
5. Delivery Solutions
- Description: A digital platform acquired in 2022, optimizing delivery operations through technology-driven routing and tracking solutions.
- Revenue Contribution (2024): Integrated into Supply Chain Solutions ($10.4 billion, 11.4%).
- Details: Enhances UPS’s ability to offer customer-specific logistics solutions, improving efficiency and visibility.
Revenue Breakup by Brand (2024):
Brand | Revenue ($B) | Percentage of Total Revenue |
---|---|---|
UPS (Core) | 91.3 | 100% (encompasses all) |
The UPS Store | Included in Supply Chain Solutions | 11.4% |
Happy Returns | Included in Supply Chain Solutions | 11.4% |
Roadie | Included in Supply Chain Solutions | 11.4% |
Delivery Solutions | Included in Supply Chain Solutions | 11.4% |
Geographical Presence
UPS maintains a vast global presence, operating in over 200 countries and territories. Below is a detailed breakdown of its geographical operations and revenue contributions.
1. United States
- Description: The largest market for UPS, driven by the U.S. Domestic Package segment. Operations include air and ground delivery, logistics, and retail services through The UPS Store.
- Revenue Contribution (2024): Approximately $63.7 billion (69.8% of total revenue).
- Details: Supported by a network of air and ground hubs, with significant investments in automation and smart facilities. Key markets include major urban centers and e-commerce hubs.
2. Europe
- Description: A key region for the International Package segment, with operations in countries like Germany, the UK, and France. Includes recent acquisition of a Germany-based cold-chain logistics provider.
- Revenue Contribution (2024): Part of International Package ($17.2 billion, 18.8%).
- Details: Focuses on export and import services, with facilities strategically located near major ports and airports.
3. Asia-Pacific
- Description: Covers markets like China, Japan, and Singapore, with a focus on high-growth e-commerce and manufacturing sectors.
- Revenue Contribution (2024): Part of International Package ($17.2 billion, 18.8%).
- Details: Supports cross-border trade with freight forwarding and logistics services, leveraging Asia’s role as a global manufacturing hub.
4. Latin America
- Description: Includes countries like Brazil, Mexico, and Argentina, with services tailored to regional trade and logistics needs.
- Revenue Contribution (2024): Part of International Package ($17.2 billion, 18.8%).
- Details: Operates customs brokerage and supply chain solutions to facilitate trade within and beyond the region.
5. Middle East and Africa
- Description: Serves markets like the United Arab Emirates, South Africa, and Turkey, with a focus on logistics and freight forwarding.
- Revenue Contribution (2024): Part of International Package ($17.2 billion, 18.8%).
- Details: Includes 442 employees in the UAE and 330 in Vietnam, supporting regional trade networks.
6. Other Regions
- Description: Includes smaller markets like the U.S. Virgin Islands (10 employees) and Ukraine (106 employees, operations suspended).
- Revenue Contribution (2024): Minimal, included in International Package.
- Details: Operations tailored to local needs, with limited impact due to scale or geopolitical factors.
Revenue Breakup by Geography (2024):
Region | Revenue ($B) | Percentage of Total Revenue |
---|---|---|
United States | 63.7 | 69.8% |
International (Europe, Asia-Pacific, Latin America, Middle East, Africa, Others) | 17.2 | 18.8% |
Supply Chain Solutions (Global) | 10.4 | 11.4% |
Total | 91.3 | 100% |
Financial Overview
Below are the consolidated financial statements for UPS for the year ended December 31, 2024, presented in tables.
Consolidated Statements of Income (2024)
Item | 2024 ($M) | 2023 ($M) | 2022 ($M) |
---|---|---|---|
Revenue | 91,258 | 90,958 | 100,338 |
Operating Expenses: | |||
Compensation and Benefits | 47,028 | 47,800 | 47,730 |
Repairs and Maintenance | 2,085 | 2,091 | 2,087 |
Depreciation and Amortization | 3,408 | 3,375 | 3,188 |
Purchased Transportation | 17,873 | 17,124 | 20,375 |
Fuel | 4,529 | 5,159 | 6,003 |
Other Occupancy | 1,693 | 1,680 | 1,679 |
Other Expenses | 9,054 | 8,717 | 8,203 |
Total Operating Expenses | 85,670 | 85,946 | 89,265 |
Operating Profit | 5,588 | 5,012 | 11,073 |
Other Income and (Expense): | |||
Investment Income (Expense) and Other | 677 | 333 | 2,143 |
Interest Expense | (810) | (785) | (704) |
Total Other Income and (Expense) | (133) | (452) | 1,439 |
Income Before Income Taxes | 5,455 | 4,560 | 12,512 |
Income Tax Expense | 1,314 | 1,027 | 2,929 |
Net Income | 4,141 | 3,533 | 9,583 |
Basic Earnings Per Share | 4.84 | 4.12 | 11.01 |
Diluted Earnings Per Share | 4.83 | 4.12 | 10.99 |
Consolidated Balance Sheets (December 31, 2024)
Assets | 2024 ($M) | 2023 ($M) |
---|---|---|
Current Assets: | ||
Cash and Cash Equivalents | 6,105 | 3,191 |
Marketable Securities | 85 | 2,865 |
Accounts Receivable, Net | 11,135 | 11,342 |
Other Current Assets | 2,045 | 2,149 |
Total Current Assets | 19,370 | 19,547 |
Non-Current Assets: | ||
Property, Plant and Equipment, Net | 37,843 | 36,950 |
Operating Lease Right-of-Use Assets | 3,995 | 4,223 |
Goodwill | 5,127 | 4,872 |
Intangible Assets, Net | 1,052 | 805 |
Other Non-Current Assets | 2,683 | 4,460 |
Total Assets | 70,070 | 70,857 |
Liabilities and Shareowners’ Equity: | ||
Current Liabilities: | ||
Current Maturities of Debt and Leases | 2,218 | 3,720 |
Accounts Payable | 6,408 | 6,340 |
Accrued Wages and Withholdings | 2,593 | 2,851 |
Other Current Liabilities | 4,429 | 4,192 |
Total Current Liabilities | 15,648 | 17,103 |
Non-Current Liabilities: | ||
Long-Term Debt and Finance Leases | 19,908 | 18,916 |
Pension and Postretirement Obligations | 5,509 | 6,159 |
Deferred Income Tax Liabilities | 3,803 | 3,769 |
Other Non-Current Liabilities | 4,459 | 4,596 |
Total Liabilities | 49,327 | 50,543 |
Shareowners’ Equity: | ||
Common Stock | 9 | 9 |
Additional Paid-In Capital | 0 | 0 |
Retained Earnings | 24,753 | 25,563 |
Accumulated Other Comprehensive Loss | (4,309) | (5,758) |
Noncontrolling Interests | 290 | 500 |
Total Shareowners’ Equity | 20,743 | 20,314 |
Total Liabilities and Shareowners’ Equity | 70,070 | 70,857 |
Consolidated Statements of Cash Flows (2024)
Cash Flows From Operating Activities | 2024 ($M) | 2023 ($M) | 2022 ($M) |
---|---|---|---|
Net Income | 4,141 | 3,533 | 9,583 |
Adjustments to Reconcile Net Income: | |||
Depreciation and Amortization | 3,408 | 3,375 | 3,188 |
Pension and Postretirement Benefit Expense | 1,135 | 1,463 | (716) |
Deferred Tax (Benefit) Expense | (61) | (258) | 520 |
Stock-Based Compensation | 219 | 249 | 1,216 |
Other Non-Cash Items | 1,012 | 996 | 964 |
Changes in Assets and Liabilities: | |||
Accounts Receivable | 207 | 1,167 | (1,060) |
Other Assets | 104 | 111 | (170) |
Accounts Payable | (258) | (1,138) | 39 |
Accrued Wages and Withholdings | (258) | (1,013) | 118 |
Other Liabilities | 143 | 194 | 509 |
Other Operating Activities | (834) | (762) | (721) |
Net Cash From Operating Activities | 8,858 | 7,717 | 13,490 |
Cash Flows From Investing Activities: | |||
Capital Expenditures | (3,943) | (4,774) | (4,769) |
Proceeds from Disposals of PP&E | 58 | 83 | 53 |
Purchases of Marketable Securities | (84) | (2,863) | (76) |
Sales and Maturities of Marketable Securities | 2,865 | 76 | 330 |
Acquisitions, Net of Cash Acquired | (440) | (255) | (121) |
Other Investing Activities | (74) | 83 | (141) |
Net Cash Used in Investing Activities | (1,618) | (7,650) | (4,724) |
Cash Flows From Financing Activities: | |||
Net Change in Commercial Paper | (100) | (1,047) | (454) |
Proceeds from Borrowings | 2,779 | 2,998 | 0 |
Repayments of Debt | (2,934) | (2,081) | (2,149) |
Dividends | (5,418) | (5,367) | (5,111) |
Share Repurchases | (500) | (2,250) | (3,500) |
Other Financing Activities | (247) | (249) | (824) |
Net Cash Used in Financing Activities | (6,420) | (7,996) | (11,038) |
Effect of Exchange Rate Changes | (94) | 111 | (165) |
Net Increase (Decrease) in Cash | 726 | (7,818) | (2,437) |
Cash and Equivalents, Beginning of Year | 5,573 | 13,391 | 15,828 |
Cash and Equivalents, End of Year | 6,299 | 5,573 | 13,391 |
Subsidiaries, Wholly-Owned Subsidiaries, and Associates
UPS operates through numerous subsidiaries to support its global operations. Below is a comprehensive list of known subsidiaries, wholly-owned subsidiaries, and associates, with details and revenue contributions where applicable.
1. UPS Supply Chain Solutions, Inc.
- Ownership: Wholly-owned subsidiary.
- Description: Provides logistics, freight forwarding, and supply chain management services globally. Includes operations from acquisitions like Happy Returns and Roadie.
- Revenue Contribution (2024): $10.4 billion (11.4% of total revenue).
- Details: Operates multi-client and dedicated facilities, with recent growth from technology-driven acquisitions.
2. The UPS Store, Inc.
- Ownership: Wholly-owned subsidiary.
- Description: Manages the network of The UPS Store retail locations, offering shipping, packing, and mailbox services.
- Revenue Contribution (2024): Included in Supply Chain Solutions ($10.4 billion, 11.4%).
- Details: Supports small businesses and consumers with over 5,000 locations in the U.S.
3. UPS Air Cargo
- Ownership: Wholly-owned subsidiary.
- Description: Manages air freight and cargo operations, supporting both domestic and international package delivery.
- Revenue Contribution (2024): Integrated into U.S. Domestic Package ($63.7 billion, 69.8%) and International Package ($17.2 billion, 18.8%).
- Details: Operates a fleet of aircraft, with hubs strategically located for rapid delivery.
4. UPS Capital Corporation
- Ownership: Wholly-owned subsidiary.
- Description: Provides financial services, including cargo insurance and trade finance, to support UPS’s logistics operations.
- Revenue Contribution (2024): Included in Supply Chain Solutions ($10.4 billion, 11.4%).
- Details: Enhances customer offerings with financial solutions tailored to logistics needs.
5. Happy Returns
- Ownership: Wholly-owned subsidiary (acquired in 2023).
- Description: Specializes in returns management and reverse logistics, offering box-free, label-free return solutions.
- Revenue Contribution (2024): Contributed to Supply Chain Solutions revenue growth ($10.4 billion, 11.4%).
- Details: Strengthens UPS’s e-commerce capabilities, particularly for retail customers.
6. Roadie
- Ownership: Wholly-owned subsidiary.
- Description: A same-day delivery platform focusing on flexible, on-demand logistics solutions.
- Revenue Contribution (2024): Contributed to Supply Chain Solutions revenue growth ($10.4 billion, 11.4%).
- Details: Enhances last-mile delivery for e-commerce and local businesses.
7. Delivery Solutions
- Ownership: Wholly-owned subsidiary (acquired in 2022).
- Description: A digital platform optimizing delivery operations through advanced routing and tracking technology.
- Revenue Contribution (2024): Included in Supply Chain Solutions ($10.4 billion, 11.4%).
- Details: Supports UPS’s technology-driven logistics strategy.
8. Unnamed Germany-Based Cold-Chain Logistics Provider
- Ownership: Wholly-owned subsidiary (acquired in 2024).
- Description: Specializes in complex cold-chain logistics, enhancing UPS’s healthcare logistics capabilities.
- Revenue Contribution (2024): Contributed to Supply Chain Solutions ($10.4 billion, 11.4%).
- Details: Acquired for $440 million, expected to bolster international healthcare logistics.
Revenue Breakup by Subsidiary (2024):
Subsidiary | Revenue ($B) | Percentage of Total Revenue |
---|---|---|
UPS Supply Chain Solutions | 10.4 | 11.4% |
The UPS Store | Included in Supply Chain Solutions | 11.4% |
UPS Air Cargo | Included in Package Segments | 88.6% |
UPS Capital Corporation | Included in Supply Chain Solutions | 11.4% |
Happy Returns | Included in Supply Chain Solutions | 11.4% |
Roadie | Included in Supply Chain Solutions | 11.4% |
Delivery Solutions | Included in Supply Chain Solutions | 11.4% |
Germany-Based Cold-Chain Provider | Included in Supply Chain Solutions | 11.4% |
Physical Properties
UPS owns and leases a vast network of physical properties to support its global operations. Below is a detailed overview of its key facilities.
1. Corporate Headquarters
- Location: Atlanta, Georgia, USA.
- Description: Serves as the global headquarters, housing executive offices and strategic management functions.
- Details: Owned by UPS, central to corporate governance and decision-making.
2. Information Technology Headquarters
- Location: Parsippany, New Jersey, USA.
- Description: Manages UPS’s global IT operations, including data centers and technology development.
- Details: Owned facility, critical for digital transformation initiatives like Smart Package Smart Facilities.
3. Air and Ground Hubs
- Description: UPS operates multiple air and ground hubs across the U.S. and internationally, supporting package sorting and distribution.
- Details:
- U.S. Hubs: Major hubs include Louisville, Kentucky (Worldport), and regional facilities in California, Texas, and Illinois.
- International Hubs: Located in Germany, China, and Singapore, among others, facilitating global package flow.
- Ownership: Mix of owned and leased properties, with investments in automation to enhance efficiency.
4. Multi-Client and Dedicated Facilities
- Description: Warehouses and distribution centers supporting Supply Chain Solutions, strategically located near transportation hubs.
- Details: Includes leased and owned facilities, with recent expansions to support acquisitions like Happy Returns and Roadie.
5. The UPS Store Locations
- Description: Over 5,000 retail locations across the U.S., offering shipping, packing, and mailbox services.
- Details: Primarily franchised, with some company-owned locations, leased to maintain flexibility.
6. Drop Boxes and Access Points
- Description: Over 100,000 access points globally, including drop boxes and retail partnerships, for package pickup and drop-off.
- Details: Mix of owned and leased infrastructure, designed for customer convenience and operational efficiency.
Founders Details
UPS was founded by James E. Casey in 1907 in Seattle, Washington, as the American Messenger Company. Below are details about the founder:
- Name: James E. (Jim) Casey.
- Background: Born in 1888 in Nevada, Casey started the company at age 19 with a $100 loan. His vision was to create a reliable, customer-focused delivery service.
- Contributions:
- Established the company’s core values of integrity, reliability, and efficiency, which remain central to UPS’s culture.
- Pioneered the hub-and-spoke delivery model, optimizing package consolidation and distribution.
- Expanded the company from a local messenger service to a national and eventually global logistics provider.
- Legacy: Casey’s emphasis on employee welfare led to UPS’s early adoption of employee ownership, fostering a people-led culture. He served as the company’s leader until 1962, shaping its growth into a major corporation.
Board of Directors
UPS’s Board of Directors comprises 12 members, with 92% independence and an average tenure of 8.4 years. Below is a detailed list of directors as of March 17, 2025.
1. Rodney Adkins
- Role: Independent Director, Risk Committee Chair, Compensation and Human Capital Committee Member.
- Age: 66.
- Director Since: 2013.
- Background: Former Senior Vice President at IBM, with expertise in technology and supply chain management. Holds a B.A. in Physics from Rollins College and B.S./M.S. in Electrical Engineering from Georgia Institute of Technology.
2. Eva Boratto
- Role: Independent Director, Audit Committee Chair.
- Age: 58.
- Director Since: 2020.
- Background: Former CFO of CVS Health, with extensive corporate finance experience. Holds a B.S. in Accounting and Economics from Rutgers University and an MBA from Drexel University.
3. Kevin Clark
- Role: Independent Director, Audit Committee Member (post-election).
- Age: 62.
- Director Since: 2025.
- Background: CEO of Aptiv, with expertise in global operations and technology. Holds a B.S. in Business Administration and an MBA from Michigan State University.
4. Wayne Hewett
- Role: Independent Director, Audit Committee Member.
- Age: Not specified.
- Director Since: Not specified.
- Background: Extensive experience in global operations and packaging solutions, acquired through senior executive roles.
5. Angela Hwang
- Role: Independent Director, Audit Committee Member.
- Age: 59.
- Director Since: 2020.
- Background: Former executive at Pfizer, with expertise in healthcare and global operations. Holds a B.S. in Microbiology from the University of Cape Town and an MBA from Cornell University.
6. Kate Johnson
- Role: Independent Director, Nominating and Corporate Governance Committee, Risk Committee.
- Age: 57.
- Director Since: 2020.
- Background: CEO of Lumen Technologies, with expertise in telecommunications and technology. Holds a B.S. in Electrical Engineering from Lehigh University and an MBA from the University of Pennsylvania.
7. William Johnson
- Role: Independent Board Chair, Nominating and Corporate Governance Committee Chair, Executive Committee.
- Age: 76.
- Director Since: 2009.
- Background: Former CEO of H.J. Heinz, with expertise in global operations and finance. Holds a B.S. from UCLA and an MBA from the University of Texas at Austin.
8. Franck Moison
- Role: Independent Director, Nominating and Corporate Governance Committee.
- Age: Not specified.
- Director Since: Not specified.
- Background: Former executive at Colgate-Palmolive, with expertise in global supply chains. Holds an MBA from the University of Michigan.
9. Christiana Smith Shi
- Role: Independent Director, Compensation and Human Capital Committee Chair, Risk Committee.
- Age: 65.
- Director Since: 2018.
- Background: Former President of Nike’s Consumer Direct division, with expertise in retail and e-commerce. Holds a B.A. from Stanford University and an MBA from Harvard Business School.
10. Russell Stokes
- Role: Independent Director, Compensation and Human Capital Committee, Nominating and Corporate Governance Committee.
- Age: 53.
- Director Since: 2020.
- Background: Former CEO of GE Power, with expertise in industrial operations. Holds a B.S. in Computer Science from Cleveland State University.
11. Carol B. Tomé
- Role: Chief Executive Officer and Director, Executive Committee.
- Age: 68.
- Director Since: 2003.
- Background: CEO of UPS since 2020, with prior roles as CFO of The Home Depot. Holds a B.A. in Communication from the University of Wyoming and an MBA from the University of Denver.
12. Kevin Warsh
- Role: Independent Director, Compensation and Human Capital Committee, Nominating and Corporate Governance Committee.
- Age: 54.
- Director Since: 2012.
- Background: Former Governor of the Federal Reserve, with expertise in finance and public policy. Holds an A.B. from Stanford University and a J.D. from Harvard Law School.
Investment Details
UPS holds various passive investments, primarily related to its pension and postretirement benefit plans. Below are the details:
1. Marketable Securities
- Description: Includes debt securities and cash-equivalent instruments, some accruing income at variable rates.
- Value (2024): $85 million, down from $2,865 million in 2023.
- Details: Valued using Level 1 inputs (quoted prices in active markets) and Level 2 inputs (yield curves, forward prices). No transfers into or out of Level 3 in 2024.
2. Pension Fund Investments
- Description: Includes hedge funds, risk parity, private debt, private equity, and real estate investments to fund pension obligations.
- Value (2024): Approximately $2.7 billion in outstanding commitments, expected to be contributed over three to six years.
- Details: Valued using Level 3 inputs (unobservable data), with $19 million allocated to a life insurance policy for the UPS Excess Coordinating Benefit Plan.
3. Other Investments
- Description: Includes investments in joint ventures and other non-current investments.
- Value (2024): Included in Other Non-Current Assets ($2,683 million).
- Details: Supports UPS’s strategic objectives, with minimal direct revenue impact.
Investment Breakup (2024):
Investment Type | Value ($M) | Percentage of Total Assets |
---|---|---|
Marketable Securities | 85 | 0.12% |
Pension Fund Investments | 2,700 | 3.85% |
Other Non-Current Investments | 2,683 | 3.83% |
Future Investment Plan
UPS plans to invest approximately $3.5 billion in 2025, with key allocations as follows:
- Network Enhancement Projects: Approximately 80% ($2.8 billion) will be allocated to upgrading air and ground hubs, implementing automation, and expanding smart facility technologies like RFID.
- Technology Initiatives: The remaining 20% ($0.7 billion) will focus on digital transformation, including enhancements to platforms like Delivery Solutions and cybersecurity measures.
- Acquisitions: Continued focus on strategic acquisitions to bolster capabilities in healthcare logistics and e-commerce, following the 2024 cold-chain logistics acquisition.
- Sustainability: Investments in alternative fuel vehicles and carbon-reduction initiatives to align with UPS’s environmental goals.
Conclusion
United Parcel Service, Inc. (UPS) stands as a global logistics titan, driven by a customer-first, people-led, and innovation-driven strategy. With a rich history dating back to 1907, UPS has evolved into a $91.3 billion enterprise, operating across three core segments: U.S. Domestic Package, International Package, and Supply Chain Solutions. Its extensive portfolio of services, from package delivery to advanced logistics solutions, is supported by a robust global network spanning over 200 countries. Through strategic acquisitions, technology investments, and a commitment to sustainability, UPS continues to shape the future of logistics while delivering value to its shareowners and customers worldwide.