This seems like a sweet deal for UPS. If, as some readers suggest, TNT's service could use an upgrade, I think UPS is up to the task. My last dealings with UPS were exceptionally good--they beat their delivery dates by several days. Whatever they are doing here in the US, they are doing right, and if they can duplicate it in Europe I thinks you'll see an improvement.
One other issue to consider is that the various segments of the economy are being consolidated by the biggest companies. There are certain economic ends that can benefit from scale and one of this is logistics, which may explain UPS' action.
So this was the reason. Some days ago I saw a UPS van close to where I live, and for half a second I was surprised. Then I just forgot about it. Surprised because I hadn't seen one in ages. Now thanks to your blog I know what was that UPS van doing in Finland. :)
This means that UE market is still attractive to foreign businesses. However according to this article, EU antitrust regulators don't like the way UPS and other logistics companies are breaking EU antitrust rules. UPS would have to abide by EU laws if the company really want to do business there.
Funny how that works, huh? Eyes and brain register something suprisingly out of place, we make a note of it, and then move on. Guess you'll be getting re-used to seeing the brown trucks rolling through your neighborhood.
Yes, that is exactly how it happened, little note and move on. :) I am thinking if this good or not. I mean, with how many things we do this, some of them which could be important to pay a little more attention to, or even give them some thought? We could be missing somethig.
That's an interesting development becuase FedEx is usually considered a premium service, and UPS has a variety of 2nd and 3rd day deliveries that are less expensive. You may see more people and businesses willing to wait a day or two in order to save freight costs.
"and UPS has a variety of 2nd and 3rd day deliveries that are less expensive"
@Barbara: I think that's the niche market UPS has captured where they compromise on the delivery time but win with the cost. This may be true in markets where the consumers are more sensitive towards the price. I wonder if they can continue with the same strategy in the new regions they are entering into.
I think UPS has a pretty good chnace of duplicating its service model, particulalrly since TNT is supposed to have a strong infrastructure in the EU. I hadn't thought about anti-trust issues, though. In the US, certain services can be cut out of markets where one company dominates. But I would think as long as FedEx exists, there will always be viable competition for UPS.
Not too clear about EU's antitrust issues, but UPS won't be the only company in the market. Besides FedEx, there are a number of smaller and mid-size regional players, and let's not forget that Deutsche Post DHL is still a dominant competitor.
Don't count out DHL,the US Postal Service and Smaller Services.
Its not just about Fedex .
These guys have it in them to challenge and slug it out for market share with UPS.
After all,US Postal Service in fact even has Taxpayer support(so they can maintain infrastructure in places where others can't because its uneconomical).This gives them a massive edge over the Competition.Same goes for Postal Services in Continental Europe like France Post.
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