UPS Acquisition of Mexican Delivery Giant A Nearshoring Positive

One of the big issues in nearshoring out of Mexico – deliveries – is about to get a lot easier with the purchase of Estafeta by United Parcel Service.

U.S. companies have said working with new sources in Mexico and Latin America represents a steep learning curve for them, particularly when it comes to logistics and freight. But now, a big acquisition of Estafeta, Mexico’s major delivery courier, by United Parcel Service promises to make things much easier for U.S. companies.

The American Journal of Transportation, in reporting the news, said “The acquisition is an expansion of a commercial agreement between the companies that was established in 2020,” quoting a UPS statement. The deal is expected to close by the end of the year.

Expanding into Mexico has been a priority for a number of U.S. companies involved in transportation and logistics. UPS has pointed to international expansion, especially in the nearshoring destination of Mexico, as a top growth priority for the company, according to the report. The announcement of the deal comes shortly after another important freight company, less-than-truckload freight company XPO, released details of its own plans to expand operations in the Mexico.

Estafeta, on its website, says “We are the 100% Mexican logistics integrator, whose operation model is based on environmental, social and financial sustainability. Estafeta's integrated logistics offer is a force that supports the unstoppable dynamics of business in Mexico and the world. We identify areas of opportunity in your supply chain and create, from them, the solutions that drive the growth of your business.”