UPS expects larger share in courier market

UPS expects larger share in courier market

JAKARTA (JP): U.S.-based express parcel company United Parcel
Service (UPS) is targeting 35 percent of Indonesia's market share
next year despite its relatively recent entry into the country.

UPS Indonesia president Jeff Fairbairn said on Friday the
company currently handled about 19 percent of the country's
parcel deliveries.

"We know it is tough to reach the target amid the tight market
and hard competition in the country's air express business, but
we are quite optimistic due to the growth in exports," Fairbairn
told The Jakarta Post.

"With such a huge export potential, no international courier
company can ignore Indonesian market."

Fairbairn said the company would intensify its campaigns and
presence to capture the market share.

"Our short-term goal is to widely introduce UPS services to
the Indonesian public. We don't want them to mix us up with the
UNinterruptible Power Supply," he said, referring to a computer
power protector device known by the same initials.

UPS Indonesia is 49 percent owned by U.S courier giant UPS
Worldwide and the remainder by Indonesia's Cardig Citra
Primajasa. The company started operations in Indonesia last
January.

UPS services in the country were formerly handled by Cardig as
its agent.

The company currently serves over 20 of the country's main
cities. It employs more than 200 employees and has 66 vehicles at
its disposal.

Fairbairn said the company had a long-term commitment to
Indonesia and would continue to improve its services to
customers.

"Although the country is having an economic slowdown, we
remain committed to providing the best shipping solutions to
local businesses."

UPS launched overnight delivery last month from the country to
most of Asia for shipments picked up as late as 7 p.m.

The company has also provided a next-day delivery service from
Singapore aimed at helping Indonesian export manufacturers who
rely on raw materials from overseas, especially Singapore.

Under the service, goods collected before 10 p.m in Singapore
will arrive the next day in Jakarta and Bandung.

The company also provides a two-day service to many
destinations in the United States.

"We will not shy away from the competition although we are a
new player in the country. Competition is always good for the
business," Fairbairn said.

He added that the company also offered its customers the most
sophisticated tracking technology and a money-back guarantee.

"Your money will be returned if we fail to deliver your
package on time. It is our commitment," he said.

Fairbairn said UPS preferred to cooperate for the time being
with commercial airlines for deliveries because they gave a
greater range of flight choices.

"We have asked our consumers and they want us because of our
flexibility in delivery, as they have many more delivery choices.
We offer them the latest pickup and the earliest delivery," he
said.

"But we will use our own aircraft in the future if we see the
sharp growth in the delivery volume." (gis)