UPS Buys i-parcel to Add Web Capabilities
UPS Inc. said it has purchased i-parcel to enhance management of fast-growing Internet purchases on an international basis.
In its statement, UPS said the move “continues to strengthen its logistics and technology capabilities to meet the demands of its global customer base.” Terms for the acquisition of Massachusetts-based i-parcel weren’t announced.
The move is the latest initiative by UPS to beef up its package delivery capabilities as the 2014 holiday season approaches. The company is spending $175 million to add capacity for its peak season after suffering delivery setbacks last year.
“UPS continues to look ahead to the expanding worldwide demands in the ever-growing global e-commerce market,” said Alan Gershenhorn, executive vice president and chief commercial officer.
He cited a survey by an electronic payment firm that found international electronic commerce will top $100 billion this year and triple that amount within five years.
I-parcel CEO Will Gensburg, who will remain with the company, described the service as “an international bridge linking U.S. and U.K. merchants to global e-commerce consumers.”
UPS, which ranks No. 1 on the Transport Topics Top 100 list of U.S. and Canadian for-hire carriers, said i-parcel tailors the websites of international retailers to create what was termed “a localized look and feel”.
That includes local language, total prices in local currency and fraud protection so that an estimated 100 million shoppers outside the United States and United Kingdom can buy products in their home countries from vendors that use i-parcel. As a result, consumers can buy goods from merchants in those two countries, and merchants in the United States and United Kingdom can reach new markets without additional software and marketing expense.
