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Even outside the hottest US states, heat that delivery workers aren't used to can be dangerous. Several delivery driver deaths have triggered changes. In recent years, delivery drivers reporting heat-related illnesses were second only to construction workers, according to OSHA statistics reported by E&E News. The 2022 death of 24-year-old Esteban Chavez, a UPS driver in Southern California, made national headlines. But his death came less than a year before the International Brotherhood of Teamsters, which represents UPS workers, began re-negotiating its contract with UPS.
Persons: aren't, Jeff Goodell, Goodell, Shawndu Stackhouse, Tom Williams, Esteban Chavez, AccuWeather, Chavez wasn't, wasn't, Chavez, Spencer Platt, it's, James Daniels, San Clemente , CA, Irfan Khan, Greg Abbott Organizations: FedEx, heatwave, OSHA, E, D.C, Inc, Getty, Brotherhood of Teamsters, UPS, , Los, Los Angeles County Coroner's, Labor Department, of Occupational Safety, Health, Broadway, New York City, Postal Service, it's, Los Angeles Times, Amazon, Texas Gov Locations: Portland, Yosemite, Vermont —, Northeast Washington, Northern California, Southern California, Pasadena , California, Los Angeles County, California, New york City, New York, Texas, San Clemente ,, New York City
UPS representatives told some customers that managers will begin strike contingency training Friday. UPS representatives told some customers Thursday that non-union management staff across the country would begin training for strike roles on Friday, according to a customer briefed on the plans by a UPS representative. UPS told the customer, a mid-sized retailer, that it's prioritizing which customers will still receive service in the case of a strike and warned that many packages will require extra transit time. UPS told customers it's still committed to reaching a deal by the deadline. The last time the Teamsters went on strike at UPS in 1997, any managers with the necessary licenses were asked to drive delivery trucks while other managers sorted and loaded packages.
Persons: it's Organizations: International Brotherhood of Teamsters, UPS, FedEx, Teamsters, Reuters Locations: Washington , DC
FedEx sent a memo to its delivery force encouraging security awareness in the event of a strike. Unlike unionized UPS, FedEx uses a network of small businesses that contract out its delivery routes and make package deliveries. A FedEx spokesperson told Insider that alerting delivery contractors of potential disruptions is normal practice. A Teamsters spokesperson dismissed FedEx's memo as "scare tactics to capitalize on a possible work stoppage at UPS." Who gains from a UPS strike?
Persons: Glenn Gooding, who's Organizations: UPS, Teamsters, FedEx, International Brotherhood, iDrive Logistics, , United States Postal Service
UPS and the Teamsters have been negotiating a new contract for more than eight weeks. Many thorny issues have been resolved, but the Teamsters president said a strike could still happen. So far, both sides have agreed on 55 non-economic issues, Teamsters president Sean O'Brien said in a video message released July 1. Weekend warriorsThe thorny issue of how UPS will cover shifts on the weekend has been a major point of contention for some UPS drivers since a two-tiered system was instituted in the last contract in 2018. Though progress has encouraged many parties, including some drivers in contact with Insider, economic issues — especially pay — are often the most contentious in any union negotiation.
Persons: Sean O'Brien, O'Brien, " O'Brien, Organizations: UPS, Teamsters Locations: Louisville , Kentucky, U.S, California
Glancy said startups shouldn't see the current venture slowdown as a sign to think smaller. The last few years drove billions of dollars in investment in logistics startups hoping to fix flaws in supply chains that became obvious to average consumers. As supply chains have righted themselves and the broader venture market has cooled to what some see as dangerous temperatures, the environment for logistics startups has changed dramatically. You know, there's thousands of freight forwarders. There's thousands of customs brokers.
Persons: Kaitlyn Glancy, Glancy, Flexport, There's, she's, I'm Organizations: Eclipse, Systems, Shopify, Logistics Locations: North America, Palo Alto , California, PwC, China, Flexport, Mexico, There's
But Shopify's logistics acquisitions, which came with around 550 more staff altogether, started to look like dead weight after the shine of the initial announcements wore off. By the beginning of 2023, the attitude toward logistics inside Shopify had shifted to palpable frustration, four people who worked for Shopify's logistics division said. Lance McMillan/Toronto Star via Getty ImagesIndependent of logistics, Shopify saw massive cultural shifts in the past several years. One core tenet of Shopify's work culture is "default to open," meaning it values transparency and sharing information with employees. The letter referred to Shopify's logistics work of the past four years as a "side quest" that distracted the company from its "main quest."
Persons: Shopify, it's, Oppenheimer, Ken Wong, Lance McMillan, crafters, Tobias Lütke, Slack, , Lütke, Shopify's, I've, Toby Shannan, Morgan Stanley, Jeff Hoffmeister, Bobby Morrison, Allan Leinwand, Kaz Nejatian, Nejatian, Madeline Stone, Emma Cosgrove Organizations: Employees, Amazon, Systems, Kiva Systems, Toronto Star, Getty, miscalculating, Facebook, ecosgrove Locations: Shopify, Ottawa , Ontario, , Silicon
ShipBob is an e-commerce fulfillment startup that picks and packs orders for online sellers. The company has hired Amazon alum, Melissa Nick, as Its first-ever chief supply chain officer. Nick told Insider that Amazon executives join logistics startups because they like to build. ShipBob, an e-commerce fulfillment company backed by Bain Capital Ventures, has nicked its first-ever chief supply chain officer from the prevailing force in e-commerce logistics. Amazon offers one of the fastest fulfillment services out there, but Fulfillment by Amazon is notoriously rigid.
Persons: Melissa Nick, Nick, Shopify, ShipBob, Dhruv Saxena, Divey Gulati Organizations: Amazon, Bain Capital Ventures, North, ShipBob, UPS, FedEx Locations: Chicago, Nashville , Tennessee, Los Angeles, United States, Canada, United Kingdom, Europe, Australia
FedEx's massive overhaul is showing early signs of success but package volumes are still down. For the year ahead, FedEx expects moderate revenue growth of between 1% and 3% year over year. FedEx is expecting package volumes to finally bounce back after five straight quarters of declines. FedEx's guidance for the next 12 months includes moderate revenue growth, somewhere between 1% and 3% year over year. "Green shoots," or signs of potential revenue growth, are beginning to show in Europe however, she said.
Persons: We're, Raj Subramanian, Morgan Stanley, Brie Carere, Carere, hasn't, Jason Furman, Mike Lenz, Subramanian Organizations: FedEx, Tuesday, Target, Harvard Locations: Europe, North America, Trans
TikTok is testing a new shopping section in the UK version of its app called Trendy Beat. TikTok may be preparing to sell its own products in the US, per a new trademark application filed by a subsidiary of its parent company ByteDance. It filed a trademark application in the US for Trendy Beat on May 30, listing mostly apparel items such as clothing, bathing suits, and footwear as goods associated with the mark. A spokesperson for TikTok told Insider product selections for its Trendy Beat feature may be informed by popular trends on the platform like #TikTokMadeMeBuyIt. It's turned to the UK and Indonesia to test e-commerce features first.
Persons: TikTok's, Patrick Nommensen, TikTok, It's, Nommensen, Marta Biino, Emma Cosgrove Organizations: Financial Times, Beat, YouTube Locations: Indonesia, Asia
Amazon's delivery service partners will soon need 95% of their vans ready for service at all times. Some Amazon delivery companies are panicking over a new rule that would force them to keep fewer vans in need of repair. One DSP owner called the change a "giant nightmare" for small businesses already struggling with costs. An Amazon spokesperson told Insider the company is working with Rivian to provide repair options. Amazon told Insider the changes are intended to improve safety for delivery associates and maximize future revenue for DSPs.
Persons: it's, Rivian, Jimmy Wilson, Wilson, That's Organizations: Amazon, Partners, DSPs, Vehicles, West Coast, Coast DSP, DSP Locations: Coast
Amazon's delivery service partners will soon need 95% of their vans ready for service at all times. Some Amazon delivery companies are panicking over a new rule that would force them to keep fewer vans in need of repair. One DSP owner called the change a "giant nightmare" for small businesses already struggling with costs. Amazon delivery companies worry about an aging fleetAmazon's new rule would require a delivery company with a fleet of 50 vans to keep no more than two vans out of service at a time. "The big issue is that most of Amazon's fleet is aging rapidly," said another West Coast DSP owner.
Persons: it's, Jimmy Wilson, Wilson, That's Organizations: Partners, DSPs, Vehicles, West Coast, Coast DSP, Amazon, DSP Locations: Coast
UPS is piloting making less frequent deliveries in rural areas, the company confirmed to Insider. UPS is experimenting with delivering on fewer days per week in very rural areas, the company confirmed to Insider. The pilot will cover roughly 1% of zip codes, a UPS spokesperson said, noting that most UPS customers won't be affected. UPS has been adding surcharges on top of more and more rural packages in recent years to offset these costs. But that work started with rural packages where having separate facilities and staff makes even less financial sense.
Flexport plans to integrate Deliverr, an e-commerce fulfillment company Shopify acquired for $2.1 billion last year, into its global logistics offering. Clark called the Shopify assets the "last piece" the company needed to extend its reach from the manufacturer to the end consumer. It may be the last acquisition needed to complete a "port to porch" service, as Clark described it. In fact, Clark said Amazon could be a compliment or partner to Flexport soon after announcing the Shopify deal. Yea," he said about the kind of end-to-end service Flexport is planning.
The acquisition includes Deliverr, an e-commerce fulfillment company Shopify acquired last year. Dave Clark's getting back into the e-commerce fulfillment game, but this time it's different, he told Maria Bartiromo on Fox Business Thursday. Deliverr's core business is e-commerce fulfillment which covers inventory storage, picking and packing, and handing off to delivery companies for online orders. The Amazon comparison points to Fulfillment By Amazon, the company's fulfillment service for sellers. "If you look at who they brought over from Amazon, it's all the people that built domestic transportation at Amazon," said Derek Lossing, an Amazon Logistics alum-turned-investment advisor with Cirrus Global Advisors.
That's because they'll travel on different models of ships and likely at different speeds — maybe even with different fuel. The toy giant Hasbro, for example, has pledged to reach net-zero emissions by 2050 — with a 40% reduction by 2030. Eventually, they'll have to wade into their supply chains — where 90% of most companies' emissions come from — and transportation is a key element. When companies look closer, they often find they're producing fewer emissions than they think, and identifying places to reduce gets even easier. Saving money equals reduction," Eric Rempel, the chief innovation officer of Redwood Logistics, said.
Shopify is selling most of its logistics business to freight unicorn Flexport in an all stock deal. Though Shopify's logistics journey began in 2019 as Shopify Fulfillment Network, the current iteration is less than a year old, and investors had become wary of the level of investment that getting the outfit into competitive shape would take. The acquisition was previously considered key to Shopify's fulfillment ambitions, and its team has been involved in the company's efforts to develop fulfillment software. Derek Lossing, an Amazon Logistics alum-turned investment advisor with Cirrus Global Advisors, said an acquisition-driven strategy may have been the right course — especially when the alternative involved contracting with legacy logistics players, which can take months. To some, the question of whether Shopify's layover into logistics was a waste of talent, time, and resources, can't be answered until Flexport takes hold and Clark flexes the muscles he gained building Amazon Logistics.
On the path from unpaid intern to CEO, Heather Salomon-Hoover wrote four resignation letters. And after nearly 18 years at the Texas delivery firm uShip, Salomon-Hoover officially became CEO Thursday. She's held 11 different positions at the company before CEO, including chief operating officer and interim CEO. That's a long way from uShip, which specializes in moving bulky, oddly shaped goods across town or across the country. I'm a first-time CEO, first-time board member, and for that I'm constantly looking to grow my mentorship base," she said.
Shopify announced Thursday that it is cutting 20% of staff and selling off its logistics business. Shopify's CEO Tobi Lütke announced early Thursday that the company is cutting 20% of its workforce and selling the majority of its logistics business to supply chain technology company Flexport. It's the right thing for Shopify but it negatively affects many team members who we admire and love working with. Analysts and insiders had also been expecting a major change to Shopify's logistics division, Insider reported Wednesday. But 6 River Systems, a warehouse automation and robotics company Shopify purchased in 2019 for $450 million, is being sold to UK grocery firm Ocado for an undisclosed sum.
Insiders and analysts expect a major shakeup to Shopify's logistics strategy. "The fulfillment investment is sort of the biggest anchor that's keeping the business from being more profitable." That may be a welcome change for investors, who have been voicing increasing concern with the level of investment Shopify had planned. And Shopify Logistics CEO Aaron Brown told Insider in February that 6 River Systems' warehouse automation would be "the machine in the background making everything work." Weiss then asked if Shopify Logistics is intended to turn a profit.
Revenue in the first quarter was down 6% and package volume was down by 5.4%. Both UPS and FedEx are downshifting and planning futures with smaller, more efficient networks. But beyond initial cuts, UPS and FedEx are leaning into technology upgrades to shrink strategically and emerge from the doldrums more efficient. The company has already begun the combination of Ground and Express, which will involve closing Express facilities and moving those operations into nearby Ground buildings. These networks have long acted as a moat around UPS and FedEx — making entering the delivery space so expensive it was rarely attempted.
Friction has already increased as the Teamsters accused UPS of slow-walking local negotiations. UPS said that the parties have traditionally worked on the national and supplemental contracts simultaneously and are ready to negotiate. In order to avoid a promised strike, O'Brien has said he wants better pay for part-time workers, an end to a lower-paid classification of weekend drivers, and a list of other demands. This is UPS CEO Carol Tomé's first union negotiation and she has said that the parties are not as opposed as they seem. Bone up on the issues the Teamsters have threatened to strike over with the stories below.
The idea that e-commerce will keep growing forever, and betting on it will lead to an almost inevitable rising tide, didn't survive the pandemic. Public flame-outs of entire categories of startups, like ultra-fast deliveries and Amazon seller aggregators, have further demonstrated the boom-and-bust nature of pandemic e-commerce investing. Apple's recent moves to give consumers more online privacy has had ripples through the e-commerce ecosystem, leading investors to take a beat. E-commerce logistics — fulfillment and last-mile delivery — said Sloane is fairly well-saturated at this point, he said. For many retailers, the pandemic offered a harsh lesson in how integrated their stores and their websites weren't, she said.
Amazon, FedEx, UPS, and the postal service hold 97% of the US package delivery market. Smaller delivery companies were major beneficiaries of the pandemic boom times for e-commerce. "There was a long runway for these delivery companies when FedEx and UPS didn't want your business," said Derek Lossing, an Amazon Logistics alum who now advises investors. Smaller carriers are competing less with UPS and FedEx, and more with each other. UPS and FedEx will still be in the picture, but the smaller players can outperform them in some areas.
"We will be consolidating our operating companies into one unified organization," FedEx CEO Raj Subramaniam told investors Wednesday. The shift will make FedEx's operational strategies more like competitors UPS and DHL. Regulatory risk brings up an old questionThere may also be some risks coming to the new, integrated FedEx from outside the company. In a stark difference between UPS and FedEx, UPS falls under the National Labor Relations Act and FedEx Express under the Railway Labor Act. Betting the future on slower servicesThe third risk analysts raised was market share.
"We will be consolidating our operating companies into one unified organization," FedEx CEO Raj Subramaniam told investors Wednesday. The shift will make FedEx's operational strategies more like competitors UPS and DHL. Regulatory risk brings up an old questionThere may also be some risks coming to the new, integrated FedEx from outside the company. In a stark difference between UPS and FedEx, UPS falls under the National Labor Relations Act and FedEx Express under the Railway Labor Act. Betting the future on slower servicesThe third risk analysts raised was market share.
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