UPS · 10-Q · 2026Q2 · Full report

Product Launch and Transition

UNITED PARCEL SERVICE INC · 2026-08-05 · Importance 34 · Surprise 42

UPS continued outsourcing last-mile delivery of a portion of its Ground Saver product to the United States Postal Service. The transition reduced UPS direct labor and stops but generated higher USPS fees and caused excess operational staffing in the first quarter during implementation. UPS also took revenue-quality actions affecting certain e-commerce customers and shifted toward higher-yielding volume. The company is using these actions to improve revenue quality while resizing its domestic network for lower planned volume.