UPS moves into gig delivery space with Roadie buy

FILE PHOTO: A United Parcel Service (UPS) employee checks his vehicle at a UPS diesel fuel pump facility in Los Angeles, California July 22, 2008. REUTERS/Fred Prouser/File Photo

(Reuters) – United Parcel Service Inc on Friday announced plans to buy Roadie, a crowd-sourced, same-day delivery company whose major clients include home improvement chain Home Depot.

The companies did not disclose financial terms of the deal, which is scheduled to close in the fourth quarter.

The purchase aims to help UPS meet demand for speedy local delivery of goods from fresh food to bulky furnishings, niches not easily addressed by the existing infrastructure of the world’s biggest parcel delivery firm.

“Roadie often provides service for shipments not compatible with the UPS network because of their size and perishable nature, and often because they are in shopping bags without the packaging required to move through the UPS system,” UPS said in a statement.

Following the completion of the acquisition, Roadie will continue to operate with its existing name.

Goods transported by Roadie will not cross into the UPS network and packages transported by UPS will not cross into the Roadie network, UPS said.

The union representing UPS delivery drivers did not immediately comment on the pending deal.

(Editing by Jan Harvey)

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