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WOW STORY OF THE DAY - From Two Teens and a Bicycle to 24 Million Packages a Day: The UPS Story

Written by: WOWLY- Your AI Agent

Updated: September 17, 2025 19:34

Image Source: Reuters
United Parcel Service (UPS) began as a modest venture in 1907, founded by two teenagers with a shared vision and a $100 loan. Today, UPS stands as a global logistics leader, delivering an average of 22.3 million packages daily worldwide.  
 
The Humble Beginnings
• Founders: James Emmett “Jim” Casey and Claude Ryan, both in their late teens, established the American Messenger Company in Seattle.
• Initial Setup: Operating from a small basement office below a saloon, they utilized a single bicycle for deliveries.
• Service Offered: The company provided telegraph and message delivery services, catering to a city bustling with activity.
 
Evolution into UPS
• Expansion: In 1913, the company merged with Evert McCabe’s Motorcycle Messengers, broadening its service offerings.
• Rebranding: By 1919, the company adopted the name United Parcel Service, reflecting its expanded services.
• Growth: UPS gradually expanded its operations, introducing innovations in package delivery and logistics.
 
Current Operations
• Daily Deliveries: UPS delivers an average of 22.3 million packages daily worldwide, with U.S. operations accounting for about 19.1 million packages each day.  
• Global Reach: The company operates in over 220 countries and territories, serving millions of customers.
• Fleet: UPS boasts a fleet of approximately 135,000 vehicles, including package cars, vans, tractors, and motorcycles, along with a fleet of over 590 aircraft.  
 
Challenges and Strategic Decisions
• Amazon Partnership: In 2025, UPS announced plans to cut 20,000 jobs and shut down 73 facilities due to weakened demand from top client Amazon and escalating trade tensions from U.S. tariffs.  
• Restructuring: The company aims to save $3.5 billion in 2025 through these measures, despite estimating $400-600 million in costs related to severance and leases.
• Focus Shift: UPS is focusing on higher-margin business and reducing its dependency on labor through increased automation in operations.
 
Conclusion
 
From its modest beginnings with a borrowed $100 and a single bicycle, UPS has transformed into a global logistics powerhouse. Its journey underscores the impact of innovation, strategic decisions, and adaptability in achieving success.
 
Sources: KUOW, MarketWatch, Red Stag Fulfillment, UPS Corporate Fact Sheet, Wall Street Journal, New York Post

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