UPS is a global package delivery and logistics company that picks up, transports, and delivers packages for businesses and consumers across the U.S. and in over 200 countries. UPS delivered an average of 20.8 million packages per day in 2025. UPS operates through three segments: U.S. Domestic Package (~64% of revenue), International Package (~19%), and Supply Chain Solutions (~12%), which includes freight forwarding, contract logistics, and healthcare logistics. UPS runs a single integrated air and ground network that handles all package types and service levels through shared infrastructure, improving asset utilization. UPS charges per package delivered, with revenue driven by volume and revenue per piece — which varies based on package weight, distance, service level, and customer mix. Because the network carries substantial fixed costs, profitability is highly sensitive to volume levels. UPS's most significant current initiative is the deliberate reduction of Amazon delivery volume by more than 50% from 2024 levels by mid-2026, paired with an aggressive network reconfiguration to remove fixed costs, targeting $3.5B in savings in 2025 and an additional $3B in 2026. UPS is also actively shifting its mix toward higher-yielding SMB shippers — which reached ~32% of U.S. volume in FY25 — via its Digital Access Program, which embeds UPS shipping into e-commerce platforms like Shopify and eBay. Healthcare logistics, which generated $11.2B in revenue in FY25, is a primary long-term growth focus, targeting complex cold chain and pharmaceutical logistics where specialized capabilities command better pricing.