UPS continues to embrace technology as the delivery giant announced yesterday it will purchase electric Vertical Takeoff and Landing (eVTOL) aircraft from Beta Technologies in conjunction with its UPS Flight Forward subsidiary.
The move is intended to bolster UPS’ air service for select small and mid-size markets as these eVTOL aircrafts will take off and land on-property at UPS facilities. Utilizing the aircraft will enable UPS to reduce time-in-transit, vehicle emissions and operating costs.
UPS will use the aircraft, which can carry up to 1,400 pounds of cargo, for time-sensitive deliveries that would traditionally be transported using small fixed-wing aircraft. Beta’s eVTOL aircraft has a range of 250 miles and can reach speeds of up to 170 miles per hour, giving UPS the option to use them for multiple short routes or a single, longer route.
“This is all about innovation with a focus on returns for our business, our customers, and the environment,” UPS Chief Information and Engineering Officer Juan Perez said. “These new aircraft will create operational efficiencies in our business, open possibilities for new services, and serve as a foundation for future solutions to reduce the emissions profile of our air and ground operation.”
Beta’s eVTOL aircraft comes with four fixed vertical lift propellers and one pusher propeller used for forward flight. The aircraft charges in less than an hour or less and produces zero operational emissions. UPS has also reserved Beta’s recharging station, which ensures safe and rapid charging and offers the aircraft’s batteries a second life cycle.
“We’re combining simple, elegant design and advanced technology to create a reliable aircraft with zero operational emissions that will revolutionize how cargo moves,” BETA founder and CEO Kyle Clark said. “By utilizing vertical takeoffs and landings, we can turn relatively small spaces at existing UPS facilities into a micro air feeder network without the noise or operating emissions of traditional aircraft.”
Yesterday’s announcement by UPS is the latest example of how freight companies are embracing technology as customers continue to expect shorter delivery times.
Leftover Crumbs
- Rising rates continue to hit mortgage demand. Total mortgage application volume dropped by 5.1% last week as the average contract interest rate for a 30-year fixed-rate mortgage rose to 3.36%, according to the Mortgage Bankers Association’s seasonally adjusted index. Mortgage applications to purchase a home now stand 51% higher than the same period a year ago, while applications to refinance a home loan are down 20% over the same period. “Refinance applications declined for the fifth straight week, but there was a gain in VA loan activity,” MBA economist Joel Kan said. “Overall, refinance demand has decreased, with volume over the past 10 weeks down by more than 30%.”
- Plaid valuation hits $13.4 billion. Just a few months after Visa’s failed acquisition of fintech startup Plaid, the company announced it has raised $425 million in funding at a $13.4 billion valuation. The valuation represents a significant increase from the $5.3billion Visa agreed to pay for Plaid before the deal fell through. “Looking ahead, Plaid is focused on creating a single, integrated platform focused on helping innovators build digital financial products,” Plaid CEO Zach Perret wrote. “Doing so requires scaling to meet the increased use of fintech, expanding globally to meet international demand, and delivering an expanded set of platform products to our customers.”
- Beyond Meat opens first plant outside the U.S. Beyond Meat announced it has opened a manufacturing facility in the Jiaxing Economic & Technological Development Zone (JXEDZ) near Shanghai, making it the company’s first end-to-end manufacturing facility outside of the U.S. The new plant is expected to increase the speed and scale the company’s meat alternative products can be produced and distributed within the region. “The opening of our dedicated plant-based meat facility in China marks a significant milestone in Beyond Meat’s ability to effectively compete in one of the world’s largest meat markets,” Beyond Meat founder and CEO Ethan Brown said. “We are committed to investing in China as a region for long-term growth.”
- Patreon’s valuation triples. Patreon confirmed it has raised $155 million in funding at $4 billion valuation. The company’s valuation has now tripled in less than a year after raising $90 million at a $1.2 billion valuation in September. Patreon is reportedly considering going public this year and has already been approached by SPACs earlier this year for a potential deal.
- Zoom and GoToMeeting added to Facebook’s Portal TV. Facebook announced it will now support Zoom and GoToMeeting on Portal TV after adding the popular video services last year to its hands-free video calling device, Portal. “Now, your favorite Zoom functionality extends to the largest screen in your home, so you can work from your couch as well as your desk,” Facebook said. “And while Zoom on Portal TV is great for your work calls, it’s also a great way to connect with friends and family when the work day is over.”