UPS has decided to handle all SurePost deliveries in-house starting in 2025 due to concerns over service quality and rising costs associated with the U.S. Postal Service. CEO Carol Tomé cited potential service deterioration and the Postal Service’s intent to increase delivery rates as key factors in this shift. Following this change, UPS raised SurePost rates by an average of 9.9%, which may result in customer churn, but executives believe it will enhance service reliability without harming financial performance. UPS has also significantly increased its own delivery capacity for SurePost packages.

Source: https://www.supplychaindive.com/news/ups-surepost-usps-split-q4-earnings/738822/