UPS Targets LTL, E-Commerce With New Delivery Options
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Targeting e-commerce and heavy-shipping sectors, with two new options designed to bridge the gap between parcels and freight.
The logistics giant this week introduced UPS Ground Saver and UPS Ground with Freight Pricing, both part of a broader strategy to compete more aggressively in the evolving delivery market.
UPS Ground Saver is designed for non-urgent shipments and offers a lower-cost alternative to standard UPS Ground. The service is aimed at direct-to-consumer brands and online retailers seeking to trim shipping expenses without sacrificing reliability. Packages are delivered using the existing UPS network, with transit times about one to two days longer than standard ground service.
The offering includes tracking features, delivery photo confirmation and an option for recipients to upgrade their delivery speed through UPS My Choice, the company’s consumer-facing delivery management platform.
For heavier commercial shipments, UPS Ground with Freight Pricing targets loads more than 150 pounds that typically fall into the less-than-truckload category. By pricing these shipments using small-package rates, the company is offering what it calls a simplified and cost-effective alternative to traditional freight.
The service covers nationwide delivery and skips common freight surcharges such as liftgate fees, inside delivery costs and pallet weight charges. It’s positioned as a hybrid solution that uses the company’s parcel network to handle freight-size deliveries, offering greater predictability in cost and transit time.
“UPS is on a mission to transform our customer experience by offering an end-to-end portfolio which provides delivery, returns and pickup services seven days a week,” said Matt Guffey, UPS chief commercial and strategy officer. He described the new services as “the first of many product enhancements” to come in 2025.
The additions arrive as UPS seeks to carve out more market share in both the high-volume e-commerce space and the fast-growing LTL segment. According to IBIS World, the LTL market is projected to reach nearly $94.5 billion by next year, reflecting increased demand for flexible freight options that don’t require full truckload commitments.
Guffey said UPS stands out among U.S. carriers by offering parcel-level service at freight pricing, a model he called a “true differentiator.”
The company says further enhancements to its shipping portfolio will roll out through 2025, with a focus on giving customers more control and visibility across delivery, returns and pickup options.
UPS ranks No. 1 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, No. 3 on the Top 50 list of the largest global freight carriers, and No. 4 on the Top 100 list of the largest logistics companies in North America.
