Days before its third quarter earnings report, UPS matched rival FedEx by announcing a general rate increase of 6.9% for 2023, an unprecedented figure for both major carriers set as a benchmark for pricing shipper contract rates. FedEx took heat last month in announcing its rate increase last month, as it reported a painful quarter.
Instacart and the attorney’s office for the city of San Diego have reached a settlement over charges it misclassified its delivery drivers as contractors, a heated and ongoing issue in California and elsewhere that challenges the economics of last-mile delivery companies using the pervasive gig model.
FedEx Ground told its base of 6,000 contractors that domestic peak season volume is expected to be lighter than previously reported, as the company battles headwinds a year after package flow fell below forecasts, causing pain and outcries from contractors who invested heavily in trucks and drivers.
Beauty retailer Sephora is upping its convenience game, launching an unlimited same-day delivery subscription for $49 per year, through its website or the Sephora app, a service not offered by main rival Ulta Beauty, which charges $9.95 per delivery without the app option. The program has no minimum and there is a 30-day free trial.
Clevon, maker of autonomous vehicles designed to run on city streets instead of sidewalks like many others, has opened up a U.S. office in Fort Worth, TX to launch its planned expansion here, with a number of big-box retailers and delivery providers interested, according to its CEO. The company has been running EVs in Europe since 2020.
The situation in the parcel industry — high shipping rates, increased surcharges and shipping delays — is a convergence of many complex issues, including supply/demand imbalance, a rough economy and geopolitical woes. Let’s take a closer look at how ecommerce and government laws have disrupted supply chains.
GoBolt, a white glove last-mile delivery service focused on carbon neutrality use electric vehicles and carbon offsets through a technology partnership, has launched parcel delivery in several U.S. and Canadian cities by leveraging an acquisition, with plans to expand as demand and adoption dictate.