Uber (NYSE:UBER), the San Francisco-based ride-hailing giant, has launched a new package delivery service, marking its entry into a market dominated by FedEx (NYSE:FDX), UPS, and USPS. The service will be available across approximately 5,000 U.S. cities, as announced on Wednesday.
The new feature allows Uber drivers to collect and deliver up to five sealed, prepaid packages to selected locations that are open for at least an hour. The locations can be chosen within the Uber app itself. The service is primarily designed for returns and will cost $5 per package, with a discounted rate of $3 for Uber One members.
In addition to the versatility of drop-off locations, the service also includes visual confirmation of delivery. This provides an added layer of assurance for users who wish to track their packages until they reach their respective destinations.
The move positions Uber alongside FedEx, UPS, and USPS - companies that collectively handle over 56 million deliveries daily. Data from Pitney Bowes (NYSE:PBI) indicates that these services shipped about 16 billion parcels last year alone, signifying a substantial market for Uber's new venture.
By offering this service, Uber not only diversifies its portfolio but also provides an alternative solution for package delivery and returns in the U.S., thus potentially reshaping the landscape of the logistics industry.
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