UPS is shifting its focus from traditional parcel delivery to building a robust healthcare logistics business in an effort to offset slowing revenue from its core package services, Bloomberg reported Jan. 6.
UPS Healthcare, a division that began taking shape in the mid-2000s and became a formal business unit in 2019, generated $10 billion in revenue in 2023 — roughly 10% of the company's total revenue. The company aims to double the figure by 2026, bolstered by acquisitions and new ventures in health-related logistics.
The company's latest initiative is the opening of Labport, a 100,000-square-foot medical laboratory facility in Louisville, Ky., which is designed to allow for rapid processing of test samples. The facility is already fully leased to healthcare companies, including diagnostics firm HealthTrackRx, which plans to expand its operations there.
UPS' push into healthcare comes as demand for specialized logistics such as temperature-controlled shipping grows. The company has invested heavily in cold-chain transportation and is targeting the $200 billion healthcare logistics market, expected to double by 2032, according to Bloomberg.