How Was UPS Founded?

How was UPS founded? What services does UPS provide? UPS Net Worth & Revenue
received parcels from the company ups founded in 1990s

Not to be confused with the electronic device which we use at our home to give power to our computer or other devices, UPS is also delivery company that was started in 1907. How was UPS founded and what is UPS net worth? Well, I am excited to tell you all about it!

1. The Founder

James E. Casey was an American businessman who founded the delivery company at the age of 19. He was the son of an Irish immigrant couple. He had to take the responsibility of managing the house when he was 19 after the demise of his father. So, he used to give his share of income to his family, which he earned as a delivery boy. He would travel on foot to deliver the parcels that were at nearby addresses and used a bicycle for longer distances. Hence, this answers the query of how was UPS founded.

2. Story Behind The Idea

James used to face the bustling streets of Seattle city every day while delivering the parcels. And it was a challenging task at that time since the number of delivery people was less. Moreover, there were no cell phones for communication or sharing information. His daily job included him taking the parcels, delivering them, and then rushing back again to the warehouse to pick another parcel or undertake new orders. Soon, he realized that there was a need for more delivery people who can reduce the workload and ease the delivery process. So, this is the reason why was UPS founded in order to delegate areas among different delivery workers.

3. Foundation of AMC

On August 28, 1907, James E. Casey founded the American Messenger Company with a debt of $100 with the help of his partner Claude Ryan, in Seattle. The main motive was fast and timely deliveries of parcels. Just like all other companies, they also followed foot and cycle delivery pattern for the initial years because of financial pressures. The company mainly focused on delivering packages to the retail stores and offered special delivery mail orders for their biggest client, the United States Post Office. (See How Quora started?)

4. The Merger

In 1913, they merged with their competitor Evert McCabe. After the merge, the name changed from American Messenger Company to Merchants Parcel Delivery. Moreover, they advanced themselves and acquired a Model T Ford vehicle in the same year, which was their first delivery vehicle. Now, the delivery pattern improved and the consolidated delivery (combining various parcels from different delivery services in one container to speed up the delivery process) was introduced. The vehicle was used to deliver certain packages addressed to a particular neighborhood, at once.

5. Entry of Charlie Soderstrom

Charlie Soderstrom joined the company in 1916. The entry of Charlie proved to be quite useful as he brought more delivery vehicles with him. And hence, the increase in delivery vehicles made the delivery service time quicker. They were able to fulfill demands in the market serving its main motive i.e. why was UPS founded.

6. The Name UPS

When the company expanded outside Seattle to Oakland and California, the name was changed for the first time in the year 1919. The new name was United Parcel Service (UPS). The name conveyed its true meaning which reminded the users of the real purpose of the company. It symbolized that even though the company had expanded, it is still United under the same organization. And the type of business offered as Service was related to the term Parcel. This is how was UPS founded and termed. (See Does Mail Come on Sunday in the US?)

7. Use of Air Service

In the year 1929, the company used the air service for delivery purposes for the first time. But it was hindered due to The Great Recession. Later on, during the year 1953, the air service was resumed with the name UPS Blue Label Air. It provided a two-day parcel delivery service to the major cities along the East Coast and the West Coast.

8. Products & Operations

The company now offers products such as courier express services, freight forwarding services, and logistics services. The primary service provided by the company was operational to just parcel delivery but in later years, it expanded worldwide with additional services. However, they did not change the basic motive of the company. (See How 9GAG started?) The three segments of operations of the company are:

  • U.S Domestic Package Operations,
  • International Package operations, and
  • Supply Chain & Freight Operations.

9. Growth & Expansion

  • In 1975, the United Parcel Service became International by starting operational services in Canada. Now, the company not only delivered parcels but also documents worldwide.
  • It also started its Airline services in 1985 naming them UPS Next Day Air Service.
  • Later in 1988, UPS Airlines was launched. It was authorized by the Federal Aviation Administration and became the fastest-growing airline in FAA history.

10. Transportation Vehicles

The company which acquired its first delivery vehicle, a Ford T model, is now the owner of 119,000 vehicles worldwide. And they include varieties of vehicles from bicycles to tractor-trailer trucks. The delivery vans were designed by Morgan Olson (Grumman Olson). Also, Union City Body and Utilimaster manufactures the bodies for UPS delivery vans. All the vehicles are specifically designed as per the delivery requirements and the roads where they are going to travel.

11. Cargo Airline & Drone Services

More than any cargo or passenger airline flying worldwide, UPS Airlines flies to over 800 destinations around the world and is currently the 10th largest airline in the United States. It has its headquarters in Louisville, Kentucky. The airline company has a fleet of over 260 aircraft and covers more than 200 countries and territories around the world. It has additional hubs in several countries which cover services to the nearby states or countries.

The company started a drone delivery service allowing cargo of almost 55 pounds or 25 Kilograms as well. The FAA approved and provided the company with 135 Standard Certification to carry on its services, without any hindrances. (Also read 10 Facts About Plane Smoke)

12. Records

  • The company, UPS founded in 1907 had 104,900 vehicles by 2013 and around 7000 alternative fuel vehicles. All the vehicles are chosen on the grounds of lessening or lowering the environmental pollution as much as possible.
  • By 2016, the company even added 200 hybrid electronic vehicles.
  • On the scoreboard of Climate Counts Groups, the company gained 50 points out of 100. This score was based on the effort that the company contributed to lessening the negative impact on the environment.

Hence, it also received a Clean Air Excellence Award from the United States Environmental Protection Agency because of the alternative fuel system developed by the company.

13. Net Worth & Revenue

Owing to the title of the largest package/parcel delivery service company, the UPS earns a handsome revenue of over 84.6 billion US dollars and the net worth was 1.3 billion US dollars by the year 2020. UPS net worth as of October 06, 2021, is $156.5B. (See also Where do Banks put their Money?)

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