who-owns-ups

Who Owns UPS?

Business / By / October 1, 2023

UPS is primarily owned by institutional investors like BlackRock (8%) and The Vanguard Group (9.3%). Other small individual investors comprise Carol B. Tomé, CEO at FedEx, Brian Newman, Executive Vice President (EVP), and Chief Financial Officer at UPS. And Kate Gutmann is Executive Vice President (EVP) and President of International.

AspectDetailsAnalysis
Ownership StructureUPS is primarily owned by institutional investors, with the two largest being:Institutional ownership provides stability and influence in decision-making.
– BlackRock: Approximately 8% ownership– BlackRock is a major institutional investor with significant influence in the company.
– The Vanguard Group: Approximately 9.3% ownership– The Vanguard Group is another substantial institutional shareholder, contributing to UPS’s ownership structure.
Small Individual Investors include:Individual investors, including key executives, can align their interests with the company’s success.
– Carol B. Tomé: CEO at UPSCarol B. Tomé, as the CEO, plays a crucial role in shaping UPS’s strategic direction.
– Brian Newman: Executive Vice President (EVP) and Chief Financial Officer at UPSBrian Newman’s position reflects his importance in managing UPS’s financial operations.
– Kate Gutmann: Executive Vice President (EVP) and President of International at UPSKate Gutmann oversees UPS’s international operations, contributing to its global reach.
Business ModelUPS operates as a global package delivery and logistics company, with key components including:UPS’s diverse business model allows it to serve various industries and cater to global shipping and logistics needs.
– Package and Freight Services: Offers package and freight delivery services worldwide.Package and freight services form the core of UPS’s business, serving both individuals and businesses.
– Logistics Solutions: Provides comprehensive logistics and supply chain solutions.Logistics solutions enable UPS to support businesses with warehousing, distribution, and transportation services.
– E-Commerce Support: Offers specialized shipping and fulfillment solutions for e-commerce businesses.E-commerce support addresses the needs of the growing online retail industry.
– Global Reach: Operates in multiple countries, facilitating international shipping and cross-border logistics.UPS’s global presence enables it to handle international shipments and cross-border logistics seamlessly.
– Advanced Technology: Leverages advanced technology and tracking systems to enhance delivery efficiency.Technology plays a pivotal role in UPS’s operations, allowing real-time package tracking and efficient deliveries.
Organizational StructureUPS’s organizational structure includes:A well-structured organization ensures effective management and decision-making within the company.
– Executive Leadership: The leadership team, including executives and senior managers, shapes overall strategy.Strong executive leadership is essential for setting the company’s direction and making critical decisions.
– Operating Divisions: Likely includes divisions or business units dedicated to specific service lines.Operating divisions enable UPS to focus on various aspects of its business, such as package delivery and logistics.
– Global Network: Comprises facilities like distribution centers, sorting hubs, and package delivery centers.UPS’s extensive network ensures efficient operations and timely deliveries across the globe.
– Functional Departments: Includes various functional departments, such as finance, operations, HR, and marketing.Functional departments support UPS’s operations by handling specific aspects of the business.
– Board of Directors: Responsible for corporate governance and overseeing long-term goals and shareholder interests.The board ensures that UPS’s interests are aligned with those of its shareholders and stakeholders.

Ownership Structure of UPS:

UPS is primarily owned by institutional investors, with BlackRock and The Vanguard Group being the two largest institutional shareholders. The ownership breakdown is as follows:

  1. BlackRock: BlackRock owns approximately 8% of UPS.
  2. The Vanguard Group: The Vanguard Group owns approximately 9.3% of the company.
  3. Small Individual Investors: Other individual investors in UPS include:
  • Carol B. Tomé: Carol B. Tomé is the CEO at UPS.
  • Brian Newman: Brian Newman is the Executive Vice President (EVP) and Chief Financial Officer at UPS.
  • Kate Gutmann: Kate Gutmann is the Executive Vice President (EVP) and President of International at UPS.

Business Model of UPS:

UPS operates as a global package delivery and logistics company, and its business model encompasses the following key aspects:

  • Package and Freight Services: UPS offers a wide range of package and freight delivery services for businesses and consumers worldwide.
  • Logistics Solutions: The company provides comprehensive logistics and supply chain solutions, including warehousing, distribution, and transportation management services.
  • E-Commerce Support: UPS caters to the growing e-commerce industry by providing specialized shipping and fulfillment solutions to e-commerce businesses.
  • Global Reach: The company operates in multiple countries, facilitating international shipping and cross-border logistics for businesses.
  • Advanced Technology: UPS leverages advanced technology and tracking systems to enhance its delivery efficiency and provide real-time package tracking for customers.

Organizational Structure of UPS:

UPS’s organizational structure likely includes the following components:

  • Executive Leadership: The company has a leadership team, including executives and senior managers, responsible for overall strategy and decision-making.
  • Operating Divisions: UPS may have operating divisions or business units dedicated to specific service lines, such as package delivery, freight, and logistics.
  • Global Network: The company’s extensive global network consists of various facilities, including distribution centers, sorting hubs, and package delivery centers.
  • Functional Departments: UPS likely has various functional departments, such as finance, operations, human resources, and marketing, supporting its overall operations.
  • Board of Directors: UPS has a board of directors responsible for corporate governance and overseeing the company’s long-term goals and shareholder interests.

Key Takeaways:

  • UPS is primarily owned by institutional investors, with BlackRock and The Vanguard Group being the largest shareholders.
  • The company’s business model revolves around providing package delivery, logistics, and e-commerce support services.
  • UPS operates globally, facilitating international shipping and logistics for businesses.
  • Advanced technology plays a crucial role in UPS’s operations, enhancing delivery efficiency and package tracking for customers.
  • The organization’s leadership includes prominent executives like Carol B. Tomé, Brian Newman, and Kate Gutmann, who hold key positions in the company’s management.

Key Highlights on UPS’s Ownership and Business Structure:

  • Major Ownership Stakeholders: UPS’s primary ownership is in the hands of institutional investors.
    • BlackRock: Holds an 8% stake in UPS.
    • The Vanguard Group: Owns roughly 9.3% of UPS.
  • Significant Individual Investors:
    • Carol B. Tomé: Serving as the CEO of UPS.
    • Brian Newman: Holding the position of Executive Vice President (EVP) and Chief Financial Officer at UPS.
    • Kate Gutmann: Occupying the roles of Executive Vice President (EVP) and President of International at UPS.
  • Business Model Components:
    • Package & Freight Services: UPS offers an expansive variety of package and freight delivery services to consumers and businesses globally.
    • Logistics Solutions: UPS specializes in end-to-end logistics and supply chain solutions, including distribution, warehousing, and transportation management.
    • E-Commerce Solutions: UPS provides tailored shipping and fulfillment services to meet the demands of the burgeoning e-commerce sector.
    • Global Operations: With a presence in numerous countries, UPS facilitates cross-border logistics and international shipping for corporations.
    • Technological Innovations: UPS integrates state-of-the-art technology and tracking systems, ensuring efficient deliveries and real-time package tracking for its clientele.
  • Organizational Structure:
    • Executive Leadership: UPS’s top-tier leadership, consisting of senior managers and executives, shapes the company’s overarching strategy and major decisions.
    • Operational Units: UPS likely operates through distinct divisions or business units, each focused on specific service offerings such as logistics, freight, and package delivery.
    • Worldwide Network: UPS boasts a vast global network, featuring sorting hubs, distribution centers, and package delivery establishments.
    • Functional Divisions: To ensure smooth operations, UPS probably maintains various functional units, including operations, marketing, finance, and human resources.
    • Board of Directors: Responsible for the company’s long-term vision and shareholder interests, UPS’s board oversees corporate governance.
  • Concluding Points:
    • Institutional investors, notably BlackRock and The Vanguard Group, primarily own UPS.
    • The core of UPS’s business model is centered around offering logistics, package delivery, and e-commerce-centric services.
    • UPS’s global presence enables it to provide international logistics and shipping solutions.
    • Technological advancements are pivotal to UPS’s modus operandi, magnifying delivery efficacy and ensuring real-time tracking for its customers.
    • Carol B. Tomé, Brian Newman, and Kate Gutmann are key figures in UPS’s executive hierarchy, instrumental in steering the company’s direction.

Related Visual Stories

FedEx Revenue

fedex-revenue
In 2019, FedEx experienced a revenue growth of approximately 7.2% compared to 2018, increasing from $65 billion to $69.69 billion. Despite a slight decrease in 2020 to $69.22 billion, FedEx saw a substantial revenue growth of 21.3% in 2021, reaching $83.96 billion. The positive trend continued in 2022, with revenue increasing by 11.4% to $93.51 billion, showing consistent growth over the years except for 2020.

FedEx Net Income

fedex-profits
FedEx experienced a significant drop in net income from $4.57 billion in 2018 to $0.540 billion in 2019, representing a decrease of approximately 88.2%. In 2020, net income rebounded to $1.28 billion, showing an increase of 137% compared to the previous year. The upward trend continued in 2021, with net income surging to $5.23 billion, which is a 308% increase compared to 2020. However, in 2022, net income decreased to $3.82 billion, a decline of around 27% compared to the previous year.

FedEx Employees

fedex-employees
Between 2019 and 2020, FedEx experienced an increase in the number of employees, with a growth of 2.5% from 239,000 to 245,000. In 2021, the company saw a more significant increase in employees, growing by 18% to reach 289,000. The upward trend in employee numbers continued in 2022, with an increase of 19.4%, bringing the total number of employees to 345,000.

FedEx Revenue Per Package

fedex-revenue-per-package-us
FedEx’s revenue per package experienced a slight increase of 0.8% from 2018 to 2019, growing from $18.40 to $18.54. In 2020, revenue per package decreased by 1.3% to $18.30 compared to the previous year. The downward trend continued in 2021, with a decrease of 2.8% to $17.79 compared to 2020. However, in 2022, revenue per package increased substantially by 13.3% to $20.15, reversing the previous downward trend.

UPS Revenue

ups-revenue
UPS experienced a revenue growth of approximately 3.1% from 2018 to 2019, increasing from $71.86 billion to $74.09 billion. In 2020, the revenue showed a significant increase of 14.2% to $84.63 billion compared to the previous year. The upward trend continued in 2021, with revenue growing by 15% to reach $97.29 billion. In 2022, revenue increased by 3.1% to $100.33 billion, continuing the positive growth trend over the years.

UPS Profits

ups-profits
In 2019, UPS’s net income decreased by 7.3% compared to 2018, falling from $4.79 billion to $4.44 billion. The net income experienced a more significant drop in 2020, decreasing by 69.8% to $1.34 billion compared to the previous year. A substantial rebound occurred in 2021, with net income surging to $12.89 billion, representing an increase of 861% compared to 2020. In 2022, the net income decreased slightly to $11.55 billion, representing a decline of around 10.4% compared to the previous year.

UPS Cost Structure

ups-cost-structure
For the U.S. Domestic Package segment, the revenue in 2022 was $64.2 billion, with an operating profit of $6.99 billion. In the International Package segment, the 2022 revenue was $19.7 billion, while the operating profit reached $4.3 billion. In the Supply Chain Solutions segment, the revenue for 2022 was $16.43 billion, with an operating profit of $1.77 billion.

UPS Average Revenue Per Piece

ups-average-revenue-per-piece
In 2019, UPS’s average revenue per piece (ARP) slightly decreased by 0.3% compared to 2018, moving from $9.86 to $9.83. The ARP experienced a small increase of 0.9% in 2020, rising to $9.92 compared to the previous year. In 2021, the ARP saw a more significant growth of 11.5%, reaching $11.06 compared to 2020. In 2022, the growth trend continued, with the ARP increasing by 9.5% to $12.11 compared to the previous year, indicating an upward trend in the average revenue per piece.

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About The Author

Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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