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The UPS Store

The UPS Store is a leading American franchise network specializing in retail shipping, postal, printing, and business services, with over 5,700 locations across the United States as of November 2025.^[1] Founded in 1980 as Mail Boxes Etc. by entrepreneurs Gerald Aul, Pat Senn, and Robert Diaz, it originally offered convenient alternatives to traditional post office services, such as private mailboxes and shipping options.^[2] The company was acquired by United Parcel Service (UPS) in 2001 and underwent a full rebranding to The UPS Store in 2003, transforming more than 3,000 locations to leverage UPS's global logistics expertise while maintaining a focus on locally owned franchises.^[2] Today, The UPS Store operates as the world's largest franchisor in its sector, providing a wide array of services including certified packing and shipping via UPS and USPS, professional printing and document finishing, mailbox rentals with real street addresses, notary public services, faxing, secure shredding, passport photos, and office supplies.^[3] Each location is independently owned and operated, emphasizing community involvement and personalized customer support, with a Pack & Ship Guarantee ensuring safe delivery or replacement coverage.^[4] The network has grown steadily, reaching 1,000 locations worldwide by 1990, 5,000 U.S. locations by 2021, and expanding internationally starting with Canada in 1988, now including nearly 400 Canadian stores.^[2] This franchise model supports small business owners by combining UPS's reliable infrastructure with essential everyday services, making it a go-to resource for both individuals and corporations.^[5]

Background

Founding and Early Operations

Mail Boxes Etc. was established in 1980 in the United States as a franchise-based network offering convenient alternatives to traditional postal services. The concept originated with the founding of U.S. Mail Boxes by Gerald Aul, Pat Senn, and Robert Diaz, which was quickly renamed Mail Boxes Etc. USA later that year, with Herb Goffstein assuming the role of president. The first franchise location opened in Carlsbad, California, in San Diego County, focusing on providing mailbox rentals with 24-hour access, postage stamp sales, and package shipping through independent carriers to serve small businesses and individuals seeking more flexible options than the U.S. Postal Service.^[2] The company's early operations emphasized franchising to drive rapid expansion, with the first area franchise sold in 1982, enabling regional development under master franchisees. By 1986, Mail Boxes Etc. had incorporated as Mail Boxes Etc., Inc. and gone public, raising capital to support further growth. This model proved successful, as the network reached over 700 locations across 43 states by 1988, including the opening of its first international outlet in Canada that year. The headquarters were established in San Diego, California, serving as the central hub for franchise support, training, and operational guidance during this foundational period.^[2]^[6] Throughout the 1990s, Mail Boxes Etc. experienced accelerated growth through continued franchising efforts, surpassing 1,000 locations worldwide by 1990 and nearly doubling to around 2,000 by 1992. The addition of services like packaging and copying further appealed to customers, contributing to the milestone of the 3,000th U.S. location in 1998 and over 4,000 centers globally by 2000, primarily concentrated in the United States. This expansion solidified its position as a leading provider of postal and business services before its acquisition by United Parcel Service in 2001.^[2]

Ownership and Corporate Structure

The UPS Store traces its ownership to the acquisition of Mail Boxes Etc., Inc. by U.S. Office Products Co. in 1997 and subsequent purchase by United Parcel Service (UPS) in March 2001 for $191 million in cash, establishing it as a wholly-owned subsidiary of the parent company.^[2]^[7] This transaction integrated the retail network into UPS's broader portfolio, allowing the subsidiary to leverage the parent company's shipping infrastructure while maintaining a distinct focus on franchised retail services.^[8] The UPS Store operates as The UPS Store, Inc., a dedicated subsidiary of UPS that specializes in retail franchising for shipping, printing, and business services, operating separately from UPS's primary package delivery and logistics operations. This structure enables The UPS Store, Inc. to function as the franchisor, providing centralized support such as branding, marketing, and operational guidelines, while insulating it from the core transportation activities of UPS.^[2] Individual The UPS Store locations are independently owned and operated by franchisees, who are not direct employees or affiliates of UPS but enter into franchise agreements with The UPS Store, Inc. for rights to use the brand and access support services.^[9] UPS, through its subsidiary, offers franchisees resources like training and supply chain integration but does not own or manage the day-to-day operations of these stores.^[10] The UPS Store network primarily serves the United States and Canada, with over 5,800 locations across these two countries as of 2025. Following the 2009 divestiture of international operations outside North America, the franchise model now operates solely in the United States and Canada.^[2]

Historical Development

Origins as Mail Boxes Etc.

In the 1990s, Mail Boxes Etc. (MBE) experienced significant expansion, growing to over 4,000 locations worldwide by 2000, including approximately 3,000 outlets in the United States by 1998.^[6] This rapid proliferation marked a period of aggressive franchising, but it also introduced operational complexities as the network scaled across diverse markets.^[6] The company faced intensifying competition from emerging office supply chains such as Staples, which began offering similar packaging and shipping alternatives at lower prices, eroding MBE's market differentiation.^[6] Concurrently, the U.S. Postal Service (USPS) expanded its offerings with the introduction of Pack & Send services around the mid-1990s, leveraging its monopoly on first-class mail to provide subsidized packing and shipping options that directly challenged private retailers like MBE.^[6] These competitive pressures contributed to financial strains, with declining profitability stemming from market saturation—particularly in urban areas—and escalating operational costs, including real estate and staffing for the burgeoning franchise network.^[6] By the late 1990s, many franchisees reported squeezed margins as customer traffic stabilized while expenses rose, prompting concerns about long-term sustainability.^[6] To counter these challenges, MBE introduced pre-acquisition innovations, notably forging basic shipping partnerships with major carriers like UPS and Federal Express in the early 1990s, which allowed franchisees to offer expedited delivery options and the slogan "Big or Small. We Ship It All" starting in 1993.^[6] These alliances helped diversify services beyond mailbox rentals and basic postal alternatives, providing a vital revenue stream amid shifting market dynamics.^[6] The corporate headquarters played a crucial role in supporting early franchisees during this era, offering comprehensive training programs to standardize operations and launching national marketing campaigns, such as the 1995 initiative "It’s not what we do, it’s how we do it," to emphasize superior customer service.^[6] These efforts aimed to foster loyalty and operational efficiency across the network. This period of adaptation set the stage for the 2001 acquisition by UPS, which served as a pivotal turning point for the franchise system.^[6]

Acquisition by UPS and Rebranding

In March 2001, United Parcel Service (UPS) agreed to acquire Mail Boxes Etc., Inc., the franchisor of a network of retail shipping and business service centers, for $191 million in cash.^[7] The acquisition, completed in April 2001, aimed to bolster UPS's retail footprint by integrating Mail Boxes Etc.'s extensive store network with its core package delivery operations, thereby enhancing customer access to shipping services beyond traditional drop-off points.^[11] At the time, Mail Boxes Etc. operated approximately 4,300 locations, providing UPS with an immediate expansion into the small business and consumer shipping market.^[7] The rebranding to The UPS Store was announced on February 11, 2003, with plans to convert more than 3,000 U.S. Mail Boxes Etc. franchises to the new identity, enabling them to leverage UPS's global delivery infrastructure for improved service reliability and reach.^[12] On April 7, 2003, nearly 90% of the domestic network—about 3,000 locations—officially transitioned to The UPS Store branding, marking a significant unification under the UPS umbrella.^[2] This move positioned the stores as dedicated retail extensions of UPS, emphasizing seamless integration with its logistics capabilities.^[8] The immediate impacts included enhanced shipping options through exclusive access to UPS's transportation network, allowing stores to offer competitive, direct UPS rates while maintaining their diverse services like packing and printing.^[2] Despite the corporate shift, the franchise model was preserved, with locations remaining independently owned and operated, supported by updated training and operational systems from UPS to ensure continuity and growth.^[13] The branding transition unfolded gradually through 2003, with full completion targeted by September, involving the installation of new signage, refreshed marketing materials, and revised franchise agreements to align with UPS standards.^[14] Some locations extended updates into 2004 to accommodate local adaptations, but the core rollout solidified The UPS Store as a cohesive brand by the end of the initial phase.

Expansion and Recent Milestones

Following the rebranding, The UPS Store pursued aggressive expansion from 2005 to 2010, growing its network to over 4,000 locations in the United States and Canada by 2010, with a strategic emphasis on urban and suburban sites proximate to high-traffic areas such as shopping centers and business districts to enhance customer convenience and accessibility. International operations outside North America continued as Mail Boxes Etc. under separate licensing, distinct from The UPS Store brand. This period marked a focus on domestic U.S. growth, building on the initial 3,000 rebranded stores in 2003 to solidify market presence amid increasing demand for retail shipping and business services.^[2] In the 2010s, The UPS Store advanced its operational capabilities by introducing digital tools for franchise management, including web-based platforms for inventory, customer tracking, and operational analytics to improve efficiency across locations.^[15] Additionally, the company piloted expanded services through key partnerships, notably collaborating with Stratasys in 2013 to launch 3D printing at select stores, which expanded to nearly 100 locations by 2014 to support small business prototyping and customization needs.^[16]^[17] The 2020s brought further milestones, with the network reaching 5,268 locations across the United States and Canada by 2021.^[18] During the COVID-19 pandemic from 2020 to 2022, The UPS Store heightened its focus on contactless shipping options, such as curbside drop-off and digital label printing, alongside remote business services like online document management to maintain operations while prioritizing health and safety.^[19]^[20] In 2024, the company introduced a first responder franchise fee reduction program, offering discounts to eligible veterans and public safety personnel to encourage community-oriented ownership.^[21] By 2025, it implemented a digital mobile training system, featuring interactive modules accessible via smartphones to streamline franchisee onboarding and operational learning.^[22]

Business Model

Franchise System

The UPS Store operates as a franchise-based business model, where independent owners license the brand, systems, and support from The UPS Store, Inc., a subsidiary of United Parcel Service (UPS). This structure allows entrepreneurs to leverage the established name in shipping, printing, and business services while benefiting from centralized resources. Franchisees are required to meet specific financial and operational qualifications to ensure alignment with the brand's standards.^[23] To become a franchisee, candidates must pay an initial franchise fee of $29,950, which grants the right to operate under the brand. The total investment for opening a traditional store ranges from $209,000 to $496,000 as of 2025, encompassing costs for real estate, equipment, inventory, and initial operations. This includes additional upfront fees such as the initial marketing plan fee of $7,500, design fee of $3,000, and center development fee of $7,500. Prospective franchisees also need at least $75,000-100,000 in liquid capital and a net worth of $200,000-300,000 to qualify.^[24]^[25]^[26] The selection process prioritizes entrepreneurial individuals with business acumen and a commitment to customer service, evaluated through an initial interview, review of the Franchise Disclosure Document (FDD), due diligence, and submission of a personal financial statement. Since 2024, The UPS Store has offered reductions on the initial franchise fee for eligible first responders, including firefighters, police officers, and EMTs, to encourage ownership among this group. Veterans and other underserved candidates may receive similar incentives, reducing barriers to entry.^[23]^[25]^[21] Franchisees receive comprehensive training to build operational expertise, consisting of a multi-phase program that includes web-based tutorials on products, services, and business practices, followed by in-person sessions: a five-day in-store experience for operations, a five-day university business course on marketing and finance (partially at headquarters in San Diego), another five-day hands-on customer engagement session, and a three-day print services training. In early 2025, the program incorporated new digital, mobile-friendly interactive modules to enhance accessibility and engagement for ongoing learning. Franchisees also gain access to the UPS supply chain for efficient inventory management and shipping services, supported by field consultants, marketing resources, and technology tools throughout operations.^[15]^[27]^[22] Under the revenue model, franchisees generate income primarily from shipping, printing, and related services, retaining the majority after paying ongoing fees to The UPS Store, Inc. Royalties are set at 5% of gross sales, plus a marketing fee of approximately 2.5%, for a total of 7.5% in typical cases. Based on 2024 data reported in the 2025 FDD, the average annual unit volume (AUV) for mature stores is around $692,000, providing a benchmark for potential earnings after expenses and fees. This model emphasizes scalable service offerings to drive profitability while benefiting from national brand support.^[24]^[25]^[28]

Store Locations and Growth

As of July 2025, there are more than 5,800 The UPS Store locations across the United States and Canada.^[29] By September 2025, the network had grown to 5,776 units, including international franchises primarily in Canada and Puerto Rico.^[30] This scale positions The UPS Store as the largest franchised network of retail shipping and business service centers in the region.^[31] The placement strategy emphasizes high-traffic areas to maximize customer access and visibility, with traditional locations typically situated in shopping centers, plazas, and business districts.^[32] Non-traditional sites are strategically located near military bases—over 25 such installations host stores—colleges and universities, hotels, and convention centers to serve specific demographics like students, travelers, and service members.^[33]^[25] While rural traditional locations exist in tight-knit communities, the network avoids areas below defined population thresholds to ensure sufficient demand and foot traffic.^[34] Growth has been steady since 2020, with annual additions of 100-200 new franchises contributing to a 2.8% unit increase reported for the period leading into 2025.^[30] This expansion reflects robust franchise support and market demand, earning The UPS Store a ranking in the Franchise Times Top 400 for system-wide sales growth in 2024.^[30] Operations remain confined to North America, encompassing the U.S., Canada, and Puerto Rico.

Services

Shipping and Packaging

The UPS Store offers a comprehensive array of domestic shipping services integrated with the UPS network, including UPS Ground for reliable, cost-effective delivery typically within 1-5 business days across the United States. Express options cater to time-sensitive needs, such as UPS Next Day Air for guaranteed overnight delivery by 10:30 a.m., UPS Next Day Air Saver for end-of-day delivery, UPS 2nd Day Air for two-business-day service, and UPS 3 Day Select for three-business-day delivery.^[35] International shipping extends to over 220 countries and territories via UPS Worldwide Express, which provides next-day delivery to Canada and Mexico for documents, two-day service to Europe and Latin America, and 2-3 days to Asia, with certified experts managing customs forms, regulations, and tariffs.^[36] Packaging services at The UPS Store emphasize secure handling of diverse items, with certified packing experts providing full-service options for electronics, artwork, and e-commerce shipments. For fragile or high-value goods, custom crating is available using specialized materials like foam planks, bubble cushioning, and suspension inserts to prevent damage during transit.^[37] These services are backed by the Pack & Ship Guarantee, which reimburses the item's declared value, packing costs, and shipping fees if the package is lost or damaged when prepared by store staff.^[38] In addition to custom packing, The UPS Store sells a variety of packaging supplies, including over 20 standard box sizes, packing tape, bubble wrap, and foam wraps, enabling customers to prepare shipments independently. For larger or bulkier items, freight shipping services cover air, ground, and ocean options, with capabilities for palletizing, shrink-wrapping, blanket-wrapping, and custom crating of goods such as antiques, furniture, pianos, and vehicles.^[39] Online sellers benefit from returns processing through the UPS Store 360 Returns program, which allows drop-off of prepaid return packages at any location or full packing assistance, along with label printing services for convenience.^[40]^[41] A key differentiator is the seamless integration with the UPS network at over 5,400 authorized locations, serving as exclusive drop-off points where customers access real-time package tracking directly through UPS systems—a feature not available at independent competitors. This setup ensures efficient processing and visibility from drop-off to delivery.^[42]

Printing and Business Support

The UPS Store offers comprehensive printing services designed to meet the needs of individuals and small businesses, including high-volume black-and-white and color copying on various paper sizes and finishes. Customers can access custom printing for marketing materials such as brochures, flyers, business cards, and promotional items like door hangers and catalogs. Large-format printing capabilities include banners, posters, and signs suitable for events or storefront displays.^[43]^[44] In 2013, The UPS Store became the first national retailer to introduce 3D printing services at select locations, enabling on-demand production of prototypes and custom objects, with expansions to nearly 100 stores by 2014.^[2]^[16] Complementing printing, The UPS Store provides essential document management services to streamline administrative tasks. These include secure shredding for confidential paper disposal, available on a per-pound basis at participating locations. Notary public services are offered to authenticate documents, often bundled with copying for convenience. Faxing and scanning services support quick transmission and digitization of paperwork, while passport photo processing adheres to U.S. Department of State guidelines for compliant 2x2-inch images.^[3]^[45]^[46]^[47]^[48] For broader business support, The UPS Store delivers tools tailored to small enterprises, such as virtual mailbox services that provide a real street address for professional mail receipt and package acceptance from all carriers. Mail forwarding options allow recipients to redirect correspondence to any location, enhancing flexibility for mobile or remote operations. Packing supplies, including custom boxes and materials, are stocked for on-site purchase to facilitate secure preparation of shipments. Additionally, in-house graphic design assistance helps customers create or refine visuals for print projects, ensuring high-quality outputs.^[49]^[3]^[50] Digital tools enhance accessibility, allowing users to submit print orders online through the official platform for in-store pickup or delivery, with seamless integration for adding UPS shipping to completed jobs. This hybrid approach combines creative production with logistics efficiency.^[43]

Recognition

Franchise Rankings

The UPS Store has consistently ranked among the top franchises in Entrepreneur magazine's annual Franchise 500 list, which evaluates brands based on factors including costs and fees, support, size and growth, litigation history, and years in business. In 2019 and 2020, it achieved the #5 overall ranking, while climbing to #3 in 2021 and #4 in 2024; the brand maintained a top-10 position for the ninth consecutive year in 2025 at #6. It has also held the #1 spot in the Postal and Business Services category for 35 consecutive years as of 2025.^[51]^[52]^[53]^[21]^[31]^[54] In addition to Entrepreneur's rankings, The UPS Store placed #30 on Franchise Times' Top 400 list in 2024, based on system-wide sales of approximately $3.8 billion across more than 5,000 units, and #31 in 2025 with sales exceeding $3.89 billion. The brand has maintained a consistent top-10 position in the printing and shipping category across these evaluations. Entrepreneur's 2024 ranking specifically highlighted improvements in franchisee support, including the launch of a new digital, mobile-friendly training system that enhanced operational efficiency and accessibility for owners.^[55]^[56]^[22] Post-2020 trends reflect the franchise's resilience amid the COVID-19 pandemic, with steady improvements in rankings attributed to expanded services like curbside printing support for local businesses and the introduction of new owner programs that bolstered growth and satisfaction. This upward trajectory from #5 in 2020 to top-5 positions through 2024 underscores the system's financial stability and adaptability.^[53]^[21]

Other Awards and Initiatives

The UPS Store has earned recognition beyond franchise rankings for its customer service excellence and owner satisfaction. In 2025, it secured the top spot on Forbes' Best Customer Service list for the third consecutive year, highlighting its consistent performance in delivering reliable support to customers. Additionally, surveys by Franchise Business Review have noted high levels of franchisee satisfaction with the brand, with many owners reporting strong respect for the franchisor and endorsement of its operations.^[57]^[58] In terms of social initiatives, The UPS Store supports small business entrepreneurs through programs like the Small Biz Challenge, launched in partnership with Inc. magazine to provide mentoring, resources, and prizes to innovative owners. The company also backs the Start Small, Grow Big program with Junior Achievement, fostering entrepreneurship skills among young people since the 2010s. Furthermore, as part of UPS, The UPS Store contributes to disaster relief by partnering with nonprofits such as the American Red Cross and CARE, facilitating discounted or donated shipping for humanitarian aid during emergencies.^[59]^[60]^[61] Recent programs include the 2024 launch of the First Responders Program, which offers eligible paramedics, police officers, and firefighters a 50% discount on the initial franchise fee to encourage ownership opportunities. On the environmental front, The UPS Store promotes sustainable packaging initiatives in 2025, providing eco-friendly options like biodegradable and recyclable materials to reduce waste, aligning with UPS's goal of 100% recyclable packaging enterprise-wide.^[62]^[63] The franchise model has faced challenges, including franchisee complaints in the 2010s over profitability concerns, which led to class-action lawsuits alleging issues with revenue sharing and support; these were largely resolved through court decertifications and subsequent updates to the business model to improve financial viability for owners.^[64]^[65]

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The UPS Store concept was introduced in 1980 as Mail Boxes Etc. - a convenient alternative to the post office.
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The UPS Store offers notary, fax, document shredding, passport photos, office and mailing supplies, and more.Notary Services · Office & Mailing Supplies · Computer Access · Faxing Service
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In 1907, two teenage entrepreneurs created what would become the world's largest package delivery service. Starting in a Seattle basement with a $100 loan.
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The UPS Store owners support the community, are proud business owners, set goals, celebrate diverse cultures, and have a passion for helping others.
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### Summary of The UPS Store Franchise Process
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Ship internationally from The UPS Store. We offer a variety of shipping options and the expertise to help make shipping abroad easy.
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### Summary of Freight Shipping and Handling Large Items at The UPS Store
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The UPS Store locations offer notary services to help make life easier. Once your documents are notarized, the center will help you make any necessary copies.
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our fax machines are up and running.
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Come into a participating location to have your passport photo taken. Our stores follow the recommended US passport photo requirements.
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[56]
Top-400-2025 | franchisetimes.com
The UPS Store · The UPS Store. $3,890,000,000*. 5,776. 31. 31. Jersey Mike's Subs · Jersey Mike's Subs. $3,731,000,000. 3,002. 32. 32. Express Employment ...149. Cinnabon · 32. IHOP · 74. McAlister’s Deli · 151. Re-Bath
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Back: The UPS Store® Ranks #1 on Forbes Best Customer Service ...
Oct 14, 2025 · The growing list of accolades recognizing The UPS Store includes consistent top rankings in the Entrepreneur Magazine Franchise 500®, Franchise ...
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Franchise Business Review's Hall of Fame Inductees Prioritize ...
Jan 25, 2024 · It's highly regarded for franchisee satisfaction, with 97% of franchisees respecting their franchisor and 100% supporting the brand. This ...
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Small Biz Challenge - The UPS Store
The winner of this year's Small Biz Challenge is Sydney Attis and Mikayla Garcia, owners of Just Call Me Shirley!
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Start Small, Grow Big program - The UPS Store
Learn about The UPS Store Start Small, Grow Big program and how we're supporting the development of entrepreneurship skills for young individuals.
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Delivering Health & Humanitarian Relief - About UPS
We allocated over $1.3M to partners like CARE, MedShare and the American Red Cross to provide emergency shelter, medical aid and cash assistance across the U.S. ...
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Inclusion & Belonging - The UPS Store Franchise
The First Responder Program discount is not available if you are receiving this franchise ... First-time purchasers of a The UPS Store Center franchise are ...
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Key highlights from UPS's latest Sustainability and Community ...
Apr 10, 2025 · We're very close to reaching our 2025 goals for 25% renewable electricity and 40% of alternative fuel use – a milestone on our way to reach ...
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Judge decertifies class in franchisee lawsuit against UPS
Jul 21, 2010 · A California judge handed UPS a major victory Tuesday, ruling to decertify as a class a group of UPS Store franchise owners who sued the shipping giant seven ...
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UPS Store owners are angry - Franchisees file a complaint, saying ...
The franchise owners said in a filing in U.S. District Court in Los Angeles that they haven't been able to make money because UPS undermined them by using the ...