After two quarters of explosive demand growth, UPS Purchase Intent mentions are normalizing.
Consumer mentions of sending or receiving a package via UPS increased 7% YoY in 20Q4.
This is lower than the previous quarter growth rate of +50% YoY. Mentions in 21Q1 are currently exactly flat YoY.
Last quarter, UPS reported revenue growth of +16% YoY, noting a COVID shift in B2B and B2C activity: "While our commercial business remained under pressure due to the economic downturn, during the quarter, we began to optimize our network and captured share in SMB, or small and medium-sized businesses. As a result, we saw revenue per piece improved sequentially in the U.S."
From a consumer preference perspective, UPS maintains a significant edge vs. peer FedEx.
elivery speed is the main differentiator in sentiment, as consumers increasingly demand faster, free shipping.