In a move to compete with Amazon in the competitive consumer delivery space, UPS plans to use drones and other tactics to complete shipments faster, according to reports.
The company is also looking into extending its hours of operation and deploying autonomous delivery automobiles.
“In 2019, UPS launched more new services and operational innovations than in any year in the company’s recent history,” said UPS Chairman and CEO David Abney. “We are demonstrating further bold action in 2020 as we embrace market trends, invest for growth, partner for added reach and develop unique capabilities using next-generation technologies.”
The company also has a drone delivery service called UPS Flight Forward based at the University of California at San Diego Health. The service will begin using autonomous drones in February to deliver medical supplies.
UPS also plans to increase the scope of its weekend deliveries to double its volume of package delivery and reach up to 40 million recipients. The expanded hours will allow the company to reach 98 percent of consumers in the country, up from the 85 percent it reached in the middle of last year.
“Demand for faster delivery is a growing trend, with the largest eCommerce shippers moving from two-day to one-day delivery,” said UPS Chief Marketing Officer Kevin Warren. “Our network enhancements and weekend services give our customers industry-leading choice, convenience and speed to market.”
The company plans to add five million square feet of sorting capacity with an expansion of its Smart Global Logistics Network, and it plans to invest $1.4 billion into its facilities in Pennsylvania. The company intends to have almost all of its facilities using package sorting automation by the end of 2021.
“From small business owners growing their customer base to manufacturers moving parts and products, and e-tailers looking for efficient and fast order fulfillment, companies of all sizes throughout the Northeast will benefit from UPS’ latest global network transformation initiatives,” said UPS Chief Information and Engineering Officer Juan Perez.