From Yahoo Finance: 2025-04-17 10:14:00

Delivery companies using crowdsourced drivers are enticing retailers with lower prices, but UPS warns traditional carriers offer better service. A white paper from UPS Capital discredits last-mile delivery companies using gig drivers, highlighting issues like damage, theft, and delays. Consumer sentiment is shifting towards favoring traditional carriers over gig-powered delivery options. UPS owns Roadie, a delivery platform utilizing independent drivers for last-mile services.

The white paper also emphasizes the importance of visibility, customer communication, and risk mitigation in shipping. Merchants should prioritize customer satisfaction by offering customizable shipping options and real-time package tracking. UPS Capital recommends using reliable carriers and comprehensive shipping insurance to protect against financial losses due to damaged or lost shipments. Over 40% of merchants report quarterly losses due to damaged, lost, or stolen shipments.

While traditional carriers like UPS face competition, they are implementing more frequent, subtle price changes to compete for revenue. FedEx and UPS have introduced new fees, surcharge adjustments, and rate increases to boost revenue in a low-demand environment. Ground parcel pricing remains strong, with average costs per package hitting record highs due to rate increases and surcharge adjustments.

Consumer trust in social media storefronts for deliveries remains low, with only 19% of surveyed shoppers trusting them. Consumers are now holding merchants accountable for ensuring smooth delivery experiences rather than solely blaming carriers for mishaps. Merchants can regain control of last-mile logistics by utilizing advanced tracking technologies and choosing reliable carriers to ensure quality and secure delivery.



Read more at Yahoo Finance: UPS white paper casts shade on e-commerce gig delivery providers