UPS Pilots Keyless Deliveries In New York City

United Parcel Service, Inc. UPS the company was responsible for delivering over 5 billion packages and documents in 2017 alone — making it the world’s largest package delivery company.

What Happened

In an effort to remain ahead of competitors like FedEx Corporation FDX and Amazon.com, Inc. AMZN, UPS said it will team up with smart access company Latch to design a new keyless entry protocol for drivers in New York City.

This program kicks off in Brooklyn and Manhattan, areas where apartment living is most prevalent. Drivers will not be given access to individual units; rather, they will receive specific authorization for each building in which they deliver that allows access to lobbies and package rooms if the recipient is not home.

“Any time a driver uses a credential to enter a building, Latch records the entry digitally to create an audit trail that identifies the user and the time of access, establishing a secure record of the transaction," UPS said in a statement. 

"Latch’s smart access system lets residents and others use smartphones to unlock doors throughout a building, including at the main entrance.”

Why It’s Important

With package thieves in the news lately, the question of safety and security is certainly considered with any method of delivery. UPS' New York pilot program is safe, the company said. 

“It can be difficult to securely deliver packages in high-density, multifamily urban residences, especially when people are not at home,” Jerome Roberts, UPS’s vice president of global product innovation, said in a statement. 

What’s Next

While the UPS-Latch pilot is only in New York City now, it could be expanded to markets throughout the U.S., according to UPS. 

Price Action

UPS shares were up 0.38 percent at $111.07 at the close Tuesday.

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Photo courtesy of UPS.