Delivery companies that use drivers designer attract retailers at low prices, but competition warns that service is better with traditional transport companies. (Photo: Shutterstock/New Africa)
Since the traditional parcel companies face the increasing competition from a variety of transport companies, the UPS financial services unit has published a white paper aimed at distorting the reputation of the delivery companies in the last mile, which uses the party drivers although it has a designed connection platform. Not discussed is the possibility that the trucks will search for surrender alternatives due to frustration of the size and frequency of increases at the rate of FEDEX and UPS.
The paper, published on Monday, works as a promotional tool to secure the Ups Capital charging, which the company says can help traders reduce the risk of the last inclination. However, it also provides valuable visions for merchants in the customs of e -commerce buyers.
UPS Capital said in the paper that online traders are struggling to meet customer expectations for delivery, reliable and reliable in their delivery experience, while costs contain, but Gig’s Logistics service providers have not proven to be a reliable solution.
Sixty percent of merchants have been an increase in damage, theft, or delay related to the delivery of the party. Only 12 % of the respondents expressed their confidence in the quality of the service of transport companies in disturbing compared to 69 % in 2022 who believe that GIG services provided super customer satisfaction with traditional transport companies, according to the research conducted by Dynata commissioned by Ups Capital.
Dynata 500 e -commerce seller and 1,000 US consumers surveyed.
The white paper said: “The brands that fail to manage the charging vision in a proactive manner, and communicate with clients and reduce risks, will bear the weight of consumer dissatisfaction.”
Consumer morale has also turned from 63 % preferred to retailers who offer an disturbing delivery on the same day to 55 % now in favor of traditional transport companies, with only 20 % selection of force of delivery that works by force. The newspaper said that the most common complaints of consumers about the conversation and applications connecting companies – such as Uber, shipping (targeted company), the post -transmission stage – include late packages, lack of timely communication, lost or damaged charges.
It owns UPS Roadie, a connection platform with independent drivers that use its own cars to provide delivery services on the last day, upon request and delivery on the same day.
Nearly a third of consumers classified the delivery speed as their top shopping priority, at the cost and the product. Speed demand is more clear among younger consumers, giving 51 % of Gen Z priority to fast charging compared to only 15 % of people aged 62 years and over.
Customization is also a major consider, as 44 % of shoppers surveyed want to customize their charging preferences and 84 % say they are more likely to buy than merchants who provide the ability to determine delivery options. Consumers are likely to buy from a merchant that provides the ability to track the actual time, choose the package of packets today and time, and ensure insurance coverage for all packages in the event of accidents, according to the white paper.
Almost all traders surveyed have agreed that negative or missing negative delivery issues, remaining packets in unsafe locations, or a lack of trial in the actual time-can strongly affect future purchasing decisions. The newspaper said that if the brand fails to solve the shipping problem, a quarter of consumers who were included in the polls hesitate to shop with them again, and about 44 % of the respondents in the case respondents before considering a frequent purchase.
The high popularity of shopping is directly through platforms such as Instagram, Tiktok and Facebook transforms e -commerce, but only 19 % of shoppers who trust in social media interfaces surveyed for delivery and 39 % have not tried to buy a social commercial at all.
Ups Capital and Dynata said consumers no longer blame the carriers only when things get worse. In 2022, 83 % of consumers included in the survey were responsible for delivery providers due to delivery incidents. This year, this number decreased to 39 %, as more shoppers now holds a responsibility to ensure a server delivery experience.
A UPS connecting car runs its way across the suburbs. (Photo: Jim Allen/Freightwaves)
Ups Capital said traders can regain control of the last logistics by using advanced tracing techniques for actual time charging, making regular performance reviews and comments rings to ensure service quality, and collect customer notes through satisfaction polls. It also recommended the selection of reliable transport companies that guarantee quality and safe delivery, in addition to benefiting from comprehensive shipping insurance – such as their own insurance – to protect from financial losses.
More than 40 % of the traders surveyed are reported that 2 % to 5 % of their shipments suffer from damage, loss or theft per quarter. The newspaper said that the large institutions that exceed revenue exceeding 50 million dollars are more severe.
John Kostanzo, who heads the “LDK Global Logistics”, said that UPS Capital insurance protects the trucks from lost or damaged charges, allowing them to cover their cost to recover or replace the purchase when this occurs.
“They have provided a better condition if they were able to show how established transport companies such as UPS reduced delay and damage, as well as a more consistent delivery experience. This would link a suggestion of their value with the main elements specified in the poll – cost, vision and speed of delivery. The charger insurance is not really a protection when the last hand delivery failure in a large dramatic method.”
But the incentive to partnership with GIG logistics companies may grow as Legacy Express takes on a more aggressive price approach.
Parry holders no longer announce an increase in prices on an impartial annual rhythm with a lot of prior notice. Over the past 18 months, FEDEX and UPS have made more frequent and accurate changes in prices that enter more quickly while intensifying the struggle for revenues in a low -order environment, AFS Logistics and investment TD Cowen said in their shipping index report last week.
During the first quarter, UPS announced the alignment of the new postal code area, new fees on printing and paper bills, checks and wire payment, increased late payment fees, and new payment processing fees. Both transport companies also continued to make additional fuel changes, as the clear result of UPS increased by 15 % and the equivalent in FEDEX increased by 12 % from the first quarter of 2024 to the first quarter of 2025 – even with the decrease in the price of diesel fuel by 8.4 % during the same period, according to the analysis.
“These recent changes make more complexity of the trucks to digest and negotiate. If they ignore any of these accurate updates, they can find themselves subject to punitive provisions such as comprehensive payment fees that can accommodate 2 % of prices,” said Mingcho Bates, AFS chief analyst at AFS. “If you look at the state of the market, these changes are commensurate with the declared transport companies’ goals of determining the priorities of the network efficiency and the quality of revenue. Competition from the postal service and their regional transport companies and UPS are looking to defend the soft market segment while trying to stay away from heavy discount dynamics last year and a half. ”
The parcels prices remained very strong, as the cost of each package increased by 4 % over the quarter to a standard average, driven by increasing prices, additional fees and high weight weight. It is expected that the Earth Part Power Index for each package from 31.3 % in the first quarter will decrease to 29.5 % per second, which still represents an increase of 2.6 % on an annual basis.
The Express Parcel pricing has been in line with seasonal trends in the first quarter, with the increase in the price of the general interest and fuel in increasing the cost increase by 5.2 % at the cost per package. But the growth of volume is still a challenge in the local Parcel market, which is partly due to the success of transport companies in improving ground networks, allowing trucks converting volume into a lower -cost ground service for a similar performance.
However, AFS/TD Cowen said, its sizes were also challenged by the competition from the increasing carrier scene. American Post service, for example, recently launched the next day service in 54 markets.
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