Why do UPS and FedEx have P/E ratios that are significantly lower than the market average?

6 Oct, 2025

Why do UPS and FedEx have P/E ratios that are significantly lower than the market average? The reason is that UPS and FedEx have inefficiencies in their last-mile delivery operations. These inefficiencies stem from operations that include sectioned loading, the use of low-quality smartphones, and round-trip deliveries. 

These inefficiencies hinder delivery drivers' performance, leaving them unsafe and ineffective. Current last-mile operations expose delivery drivers to dangerous situations. The challenges they face in navigating these unsafe conditions negatively impact the effectiveness of their work.

The worst situation I’ve encountered while working as a delivery driver at UPS happened during a pitch-black night with pouring rain. My GPS was lagging, and the narrow, steep roads with sharp turns made driving difficult. My packages, which were originally sorted, got mixed up within minutes, forcing me to stop and reorganize constantly. At one point, while driving downhill in the rain, I couldn’t see the upcoming bend, and I hit a road barrier. The damage cost more than a month’s pay. Fortunately, I wasn’t hurt, but I faced other dangers at work, such as the risk of dog attacks.

The pitch-black night and heavy rain made it hard to find destinations. The work phone’s GPS almost failed. Narrow, steep roads and sharp turns caused the neatly organized packages to quickly get mixed up. I had to reorganize them several times to keep the packages in their correct sections.

That night, while driving down a steep hill, even with my 20/10 vision, I couldn't see the curve at the end of the road ahead. As a result, my car hit a road barrier while I was descending. The repair costs were more than my entire month's wages, wasting all my hard work for the month. Luckily, I wasn't injured. I’ve also dealt with bite risks from various dogs on several occasions each day on the job. After that incident, I've been constantly thinking about how to make drivers' work safer and easier, almost like playing a game, while also doubling their efficiency. I'm very grateful that our team has been working so hard to achieve this goal.