UPS trucks in the US

Market sizing
Recent activity on Nov 06, 2018
2 Answers
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Anonymous A asked on Nov 05, 2018

How many trucks does UPS have in the US?

How would you go with answering this?

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Anonymous B replied on Nov 05, 2018

Hi,

I would follow a three-step approach (starting from the demand site):

  1. estimate the number of packages sent in the US per year (private + business)
    1. private: based on population & packages sent / population bracket
    2. business: +25% of private to keep it simple
  2. guess the market share of UPS, which translates into the number of packages delivered by UPS per year (~1/3 should do the deal, but should be verified with the interviewer)
  3. estimate the number of trucks needed to deliver those parcels
    1. how many parcels fit into a truck
    2. how many rides a truck can drive in a day
    3. number of driving days/truck (kick 1/2 days out for maintenance)

Frankly speaking, this seems a little complicated for an interview. I'm curious, what's your opinion on this approach.

Best,

F.

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Anonymous replied on Nov 06, 2018

Hi,

Anonymous B's approach seems pretty solid.

Bonus points for remarking that UPS has both local delivery trucks and long-haul trucks that supply their distribution centers...

Cheers

Elias

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