This article from the WSJ reports that UPS has seen its profit margin decrease as e-business deliveries quadrupled. Some juicy quotes follow.
"Because of the ubiquity of free shipping, fierce competition from other delivery services and Amazon's power to drive down shipping costs as it gets even more enormous, UPS's average revenue on each Internet-related package it handles is dropping.
"UPS is under more pressure than FedEx Corp. and the U.S. Postal Service because UPS is the biggest e-commerce carrier and its two rivals dived into the business later with narrower strategies.
labels = elasticity, pricing, strategy
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