NEW YORK (AP) — A surge in online shopping helped UPS post record revenue during the last three months of 2020, the company said on Tuesday.
Its stock rose more than three per cent in afternoon trading.
Demand for UPS and other delivery companies has spiked as more people shop online during the pandemic and avoid going into stores. Not only was the Atlanta company working to deliver gifts during the holiday season, but it also started shipping COVID-19 vaccines at the same time.
To keep up, it hired thousands of more workers and saved space for the vaccines, which need to be kept in deep freezers. During the quarter, UPS said the daily average number of packages it delivered rose nearly 11 per cent.
Its biggest customer — online shopping giant Amazon — helped fuel growth.
Amazon accounted for 13.3 per cent of UPS’s total revenue last year, up from 11.6 per cent the year before, said UPS CEO Carol Tome. She expects pandemic-fuelled online shopping habits to stick, even as more stores re-open.