United Parcel Service (NYSE:UPS) announced on Tuesday the expansion of its shipping portfolio with two new ground services. The company highlighted that the UPS Ground Saver and UPS Ground with Freight Pricing services align with the company's customer-first strategy that aims to enhance delivery options for residential and commercial shippers. 

Ground Saver is designed for less urgent packages, offering economical rates, delivery times comparable to standard UPS Ground, and features like Delivery Photo and recipient control upgrades through UPS My Choice. It targets direct-to-consumer businesses shipping lower-value merchandise while maintaining reliability.

Ground with Freight Pricing caters to shipments over 150 pounds, providing cost savings compared to less-than-truckload carriers. It eliminates additional fees for services like lift-gate delivery and offers nationwide coverage using UPS’s network. This service was said to be ideal for commercial shippers seeking reliable small package solutions at predictable rates.

UPS Chief Commercial and Strategy Officer Matt Guffey emphasized that the innovations are part of a broader plan for enhancements planned for this year, with the goal to transform the customer experience by increasing control, visibility, and choice. With the LTL market projected to reach $94.5 billion by 2025, UPS (NYSE:UPS) sees significant growth potential in offering parcel services at LTL pricing, which is seen as a unique differentiator in the industry. The company noted that the developments underscore its commitment to adapt to evolving logistics demands, while maintaining high service standards.

Shares of UPS (UPS) pushed 2.2% higher in premarket trading amid a broad market rally. The package delivery stock is still down more than 20% on a year-to-date basis. The dividend yield for new buyers is 6.85%.