UPS and Stamps.com teaming up
Shares of Stamps.com are soaring for a second day after announcing a partnership with delivery giant UPS.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| STMP | NO DATA AVAILABLE | - | - | - |
| UPS | UNITED PARCEL SERVICE INC. | 134.15 | +2.78 | +2.12% |
The two announced a collaboration late Monday in which UPS will be offering Stamps.com customers discounts of as much as 55 percent less than daily rates while waiving various surcharges as well. And UPS e-commerce connectivity will now be "fully integrated" into various Stamps.com platforms.
Yet the real beneficiary will be small business customers.
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“This new collaboration will allow us to bring the leading shipping solutions of UPS to our customer base in a simpler and more seamless fashion, and at very attractive new discounts,” added Ken McBride, Chairman and CEO of Stamps.com. “We want to empower our customers, and we know that delivery speeds and competitive rates are an important factor for small business success.”
Despite investor enthusiasm over the deal, shares of Stamps.com have dropped over 50 percent this year, in part after the company decided not to continue its exclusive deal with the United States Postal Service back in February.
The deal may help curb those losses over the longer term say, Wall Street analysts.