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UPS Releases 1Q 2021 Earnings

UPS Releases 1Q 2021 Earnings
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UPS soars on record results, stock leaps

By Reuters Staff 2 Min Read (Reuters) -United Parcel Service Inc on Tuesday posted record quarterly profit and revenue on pandemic-fueled demand for doorstep deliveries and air transportation. Shares in the world’s biggest package delivery firm soared 12.1% to $197.07 in early trading, after operating profit swelled during the first quarter, when severe winter weather briefly disrupted operations. “The company crushed our more conservative estimates, as operating leverage in the domestic segment – the key controversy on the stock – was very strong,” Bernstein analyst David Vernon wrote in a client note. Business is booming at UPS and rivals like FedEx Corp, DHL and Amazon.com Inc since the pandemic shifted purchases of everything from food to furniture online.

Gig Players Like DoorDash and Shipt Threaten UPS and FedEx

DoorDash This story is available exclusively to Insider subscribers. Become an Insider and start reading now. Target s new delivery strategy shows FedEx and UPS are being disrupted by the gig economy. Top analysts see gig startups taking volume from UPS and FedEx.  Startups are raising millions to build gig-backed delivery networks. Target is making a tweak to its e-commerce logistics strategy and good results could be bad news for UPS and FedEx.  The retail giant will use Shipt drivers to pick up e-commerce packages at its new sortation center in Minneapolis for delivery directly to customers, COO John Mulligan announced earlier this month. 

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