New developments in US logistics: UPS acquires Roadie to achieve local same-day delivery

Recently, the American logistics company UPS announced the acquisition of the technology platform Roadie to enable local same-day delivery services across the United States.  

The combination of Roadie’s technology and UPS’s products will open the door to new growth opportunities. Roadie ’s technology platform will also provide opportunities to improve existing and potentially add additional UPS small package capabilities.

The transaction is expected to be completed in the fourth quarter, and the two companies did not disclose financial terms. UPS said Roadie will continue to operate under its current name, and goods transported by Roadie will not enter the UPS network, and packages transported by UPS will not enter the Roadie network.

UPS (United Parcel Service, Inc.) was founded in 1907 and is headquartered in Atlanta, Georgia, USA. It is a leading global logistics company that provides a variety of solutions to improve global business management efficiency, including package and cargo transportation, international trade facilitation, and advanced technology deployment. UPS has business outlets in more than 220 countries and regions around the world and has 495,000 employees. In 2019, UPS's turnover reached US$74 billion.

Roadie was originally a technology company that proposed the concept of "rideshare delivery". When delivering goods from one city to another , you can open this app to check if there are any drivers who are on the way. When both parties agree on the fee, the latter will be responsible for delivering the package.

“UPS customers, including large enterprises , are increasingly seeking local, same-day delivery solutions for all types of shipments … Roadie often serves shipments that are not compatible with the UPS network,” UPS said in a press statement.

According to the Roadie website , the Roadie platform has 200,000 verified drivers who can provide delivery services to more than 20,000 zip codes. The platform operates similarly to Uber or Lyft, but it provides ride-hailing services to packages and goods instead of people. Roadie will continue to operate under the Roadie name . Goods transported by Roadie will not enter the UPS network, and vice versa.

In a separate announcement, UPS said it plans to hire more than 100,000 temporary workers to prepare for the upcoming peak shipping season.

logistics