UPS to Sell Freight Trucking Business for $800 Million
Summary: “UPS and rival FedEx have faced huge increases in shipping volume during the coronavirus pandemic, as consumers have ordered everything from their essential goods like toothpaste and toilet paper to bulky items to outfit home offices and outdoor play sets.”
To focus on business to customer delivery, and avoid investments that will be needed to maintain competitiveness, UPS will sell its freight unit which offers “less-than-truckload services” to TFI International in a deal that will close in the second quarter of 2021. This business move “is one of the biggest strategic shifts by new Chief Executive Carol Tomé.” It has led to a $500 million impairment charge.
UPS is a trucking and delivery company. Doesn’t selling its freight business to TFI international mean the end of its operations? Explain
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