Pitney Bowes and UPS Strike New Partnership

Earlier this week, Pitney Bowes and UPS announced the two companies would usher in a new era of partnership. As part of the deal, businesses using UPS for office shipping products will be able to access discounted UPS rates via Pitney Bowes.

Pitney Bowes and UPS Will Offer Discounted Shipping Rates for Business Clients…But Not Individuals or Small eCommerce Businesses

The integration comes as a part of UPS Digital Access Program, which will bring discounted rates up to 62% off UPS 2nd day air service and up to 48% off UPS ground shipments through Pitney Bowes’ SendPro sending technologies. As part of the announcement, a spokesperson for the company said the relationship will help drive down costs and generate savings for businesses.

Interestingly enough, the deal seems to only include business clients, and not individuals or small eCommerce businesses. If small businesses still want to save the most money, they’ll still need to use free USPS online shipping software.

Fortunately, individuals and small eCommerce businesses are better off shipping with USPS than any other carrier, anyway. Online shipping software makes USPS the premier carrier for eCommerce businesses sending small packages, with savings up to 90% off of Post Office retail rates. Private carriers such as FedEx and UPS specialize in larger, heavier shipments, emergency delivery, and business-to-business deliveries.

This Deal May Be a Response to Postal Service Uncertainty

This new partnership is a big deal because, historically, Pitney Bowes has never worked with any carrier except USPS. As the Postal Service faces an uncertain financial future, Pitney Bowes may be looking to limit its exposure.

As far as financial markets go, people seem to be reacting positively to the news. Since the announcement, Pitney Bowes stock (NYSE:PBI) is up nearly 63%. Meanwhile, UPS (NYSE:UPS) is up by only 1.3%.