United Parcel Service or UPS as we know it, is looking forward to introduce a new pricing model. It is aimed to cover the cost of empty spaces it bears because of the few retail partners, especially during the holiday season.
UPS is currently in negotiation with retailers with the new price model that is in pipeline. According to the reports, the delivery giant has asked retailers to help pay for surplus space on trucks when a retailer fails to ship as many packages as planned during peak periods.
Both, UPS and it’s rival FedX have already invested billions to add more capacity to its artillery in order to handle the torrential flow in online shopping. This move comes in to retrieve that money invested.
What UPS has to say about the surge?
“We will handle it on a customer by customer basis, we will look at our costs and that’s the way we’re going to address it,” David Abney, CEO, said. He further added that “If there are variations to the plan, let’s see what we can do, but we should be compensated accordingly.”
We will have to wait a little further so as to see what impact does this move create across retailers as well as consumers.
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