![I'm Zack Fuss and today we are breaking down UPS. We cover the impetus behind UPS' better not bigger strategy, Amazon's position in the parcel delivery market, and the secular shifts taking place in the industry.<br /><br />Our guest is the CEO of Colossus and former Transport Analyst Matt Reustle. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here: https://www.joincolossus.com/episodes/19299559/reustle-ups-leaders-of-the-package<br /> <br /> -----<br /> <br /> This episode is brought to you by Visible Alpha. The team at Visible Alpha built a platform to analyze consensus data and financial metrics on over 6,000 public traded companies. Rather than having to dig through models one by one, Visible Alpha extracts data from every line item across sell-side models so you can better understand expectations on metrics beyond just revenue and earnings. Try Visible Alpha for free by visiting visiblealpha.com/breakdowns<br /> <br /> -----<br /> <br /> This episode is brought to you by Quartr. With Quartr, you can access conference calls, investor presentations, transcripts, and earnings reports – straight from your pocket. Quartr is 100% free and includes companies from 12 markets including the US, the UK, Canada, India, and all the Scandanavian countries. Quartr is available for both iOS and Android, so check out the app today.<br /> <br /> -----<br /> <br /> Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.<br /> <br /> Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.<br /> <br /> Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss<br /> <br /> Show Notes<br /> [00:00:00] - Introduction<br /> [00:02:37] - [First question] - The footprint of UPS in the US economy<br /> [00:04:11] - What relevant metrics analysts use to understand UPS’ value<br /> [00:06:57] - How logistics networks work and operating leverage on their fixed assets<br /> [00:10:43] - UPS’ origin story and key differences between it, Amazon, and FedEx<br /> [00:18:24] - Whether or not Amazon is consuming the market or if the market is growing<br /> [00:22:20] - Decreased return on capital and the roadmap to increase returns going forward<br /> [00:25:14] - Making a decision to lean into their network and what it meant for their customers<br /> [00:27:33] - The importance of management and needing outsider management<br /> [00:31:40] - Capital investment programs and what Amazon’s growth means for UPS<br /> [00:34:41] - Secular changes versus historical cyclicality of fulfillment businesses<br /> [00:36:35] - Competitive impacts Amazon and USPS could have on UPS’ future success<br /> [00:42:26] - Why cross-border delivery is such a lucrative aspect of this market<br /> [00:42:51] - Lessons for investors and builders when studying UPS’ story<br /><br />#businessbreakdowns #UPS #podcast](https://media.thebusinessprofessor.com/wp-content/plugins/youtube-feed-pro/img/placeholder.png)
I’m Zack Fuss and today we are breaking down UPS. We cover the impetus behind UPS’ better not bigger strategy, Amazon’s position in the parcel delivery market, and the secular shifts taking place in the industry.
Our guest is the CEO of Colossus and former Transport Analyst Matt Reustle.
Show Notes
[00:00:00] – Introduction
[00:02:37] – [First question] – The footprint of UPS in the US economy
[00:04:11] – What relevant metrics analysts use to understand UPS’ value
[00:06:57] – How logistics networks work and operating leverage on their fixed assets
[00:10:43] – UPS’ origin story and key differences between it, Amazon, and FedEx
[00:18:24] – Whether or not Amazon is consuming the market or if the market is growing
[00:22:20] – Decreased return on capital and the roadmap to increase returns going forward
[00:25:14] – Making a decision to lean into their network and what it meant for their customers
[00:27:33] – The importance of management and needing outsider management
[00:31:40] – Capital investment programs and what Amazon’s growth means for UPS
[00:34:41] – Secular changes versus historical cyclicality of fulfillment businesses
[00:36:35] – Competitive impacts Amazon and USPS could have on UPS’ future success
[00:42:26] – Why cross-border delivery is such a lucrative aspect of this market
[00:42:51] – Lessons for investors and builders when studying UPS’ story