UPS’ Exploration of Alternatives for Freight Unit Seen as ‘Unexpected’

United Parcel Service’ announcement regarding the exploration of alternatives for its freight business Coyote Logistics comes about three months after digital startup Convoy, backed by investors including Jeff Bezos and Bill Gates, wound down its operations. “Coyote represents a relatively small piece of UPS’ business and has seen a lot of volatility amid revenue pressure, but we didn’t expect this,” Citi analyst Christian Wetherbee tells WSJ. “The U.S. freight economy has had two particularly bad years, as freight saw a recession over the past 12 to 18 months, but we’re getting past that,” Wetherbee says. UPS shares fall 7.1% to $146.80.

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