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#16 How Jim Casey Turned Service Into UPS's Superpower
Jim Casey's story is one of the most remarkable entrepreneurial journeys in American business history. Born in 1888 in Nevada, Casey's life took a dramatic turn when his father, Henry, was diagnosed with miners lung disease and could no longer work. At just 11 years old, Jim became the family's breadwinner, forced to drop out of school and work alongside his younger brother to support their entire household on $6 per week.
These early hardships forged Casey's character in profound ways. Working the night shift for American District Telegraph Company, young Jim delivered messages through the roughest parts of Seattle, handling everything from routine deliveries to dangerous assignments on the waterfront. Rather than becoming bitter, he emerged from these experiences with an unshakeable commitment to treating every customer with honesty and courtesy, regardless of who they were. This became the foundation of his business philosophy.
The Power of Compounding Service
In 1907, at age 19, Casey partnered with Claude Ryan to launch American Messenger Company from a tiny basement office below a saloon. His insight was brilliant in its simplicity: in a commodity business where dozens of messenger services all did the same basic thing, the differentiator would be service. Casey understood that anyone could deliver a message or package, but not everyone could do it on time, to the proper location, with a clean pressed uniform and a smile.
Casey's approach mirrors that of other great entrepreneurs like Samuel Cunard, who built his steamship empire on reliability and punctuality. Both men recognized that service compounds over time, creating an insurmountable competitive advantage. As Casey himself said: "Service - the sum of many little things done well."
Building Through Adversity
UPS's growth strategy was shaped by early rejection. When banks turned down their requests for expansion capital, Casey and his partners became creative, acquiring smaller messenger services in other cities through stock deals rather than cash purchases. This forced frugality became a strategic advantage, allowing them to retain talented operators who understood local markets while making them owners with skin in the game.
By 1929, UPS was making 29,000 deliveries per day within a 125-mile radius of downtown Los Angeles. But their grand vision - nationwide delivery service - would take 68 years to achieve, requiring city-by-city, state-by-state battles against the Interstate Commerce Commission's regulatory barriers.
A 76-Year Vision
Jim Casey would work on building UPS for an astounding 76 years. His relentless focus on service, combined with early adoption of technology (from delivery trucks to modern computing systems), created a company culture that survives to this day. The decision to make UPS 100% employee-owned until their 1999 IPO ensured that Casey's spirit of partnership and shared success permeated every level of the organization.
Casey nearly lost it all in 1929 when he sold the company, only to immediately regret the decision. Fortunately, the market crash that year gave him the opportunity to buy back control over four years - a lesson in the danger of selling your life's work.
Today, UPS delivers to over 200 countries and territories worldwide, maintaining delivery reliability rates of 97-98%. The brown trucks that Charlie Soderstrom suggested in 1916 have become synonymous with dependable service - a testament to Jim Casey's understanding that excellence in the fundamentals, compounded over time, builds empires.
Deeply Driven Books (Amazon Affiliate) - 100% of commissions will be donated to help support Children’s Literacy!
https://amzn.to/45R6rxC
Previous Episodes
#15 Samuel Cunard - The Compounding Power of On Time Delivery
https://apple.co/3LpK4HX
#9 Sam Zemurray - The Banana Man (What I Learned)
https://apple.co/47PuxbE
My Life & Work – Henry Ford
https://a.co/d/iFc4jUT
#6 Mars Family (Domination of Chocolate)
https://apple.co/4acYFk7
Sam Walton: Simple Ideas & Deep Business Impacts
https://apple.co/4n1bQaz
#3 Becoming Trader Joe | Business Masterclass from a Legend
https://apple.co/4igkLEh
If you enjoyed this episode, please leave us a review. It would greatly help the show and we thank you in advance for all your tremendous support.
Deeply Driven Newsletter
Welcome!
Deeply Driven Website
Deeply Driven
X
Deeply Driven (@DeeplyDrivenOne) / X
Substack
https://larryslearning.substack.com/
Thanks for listening friends!
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By Deeply Driven Podcast | Insights into Business History and EntrepreneurshipJim Casey's story is one of the most remarkable entrepreneurial journeys in American business history. Born in 1888 in Nevada, Casey's life took a dramatic turn when his father, Henry, was diagnosed with miners lung disease and could no longer work. At just 11 years old, Jim became the family's breadwinner, forced to drop out of school and work alongside his younger brother to support their entire household on $6 per week.
These early hardships forged Casey's character in profound ways. Working the night shift for American District Telegraph Company, young Jim delivered messages through the roughest parts of Seattle, handling everything from routine deliveries to dangerous assignments on the waterfront. Rather than becoming bitter, he emerged from these experiences with an unshakeable commitment to treating every customer with honesty and courtesy, regardless of who they were. This became the foundation of his business philosophy.
The Power of Compounding Service
In 1907, at age 19, Casey partnered with Claude Ryan to launch American Messenger Company from a tiny basement office below a saloon. His insight was brilliant in its simplicity: in a commodity business where dozens of messenger services all did the same basic thing, the differentiator would be service. Casey understood that anyone could deliver a message or package, but not everyone could do it on time, to the proper location, with a clean pressed uniform and a smile.
Casey's approach mirrors that of other great entrepreneurs like Samuel Cunard, who built his steamship empire on reliability and punctuality. Both men recognized that service compounds over time, creating an insurmountable competitive advantage. As Casey himself said: "Service - the sum of many little things done well."
Building Through Adversity
UPS's growth strategy was shaped by early rejection. When banks turned down their requests for expansion capital, Casey and his partners became creative, acquiring smaller messenger services in other cities through stock deals rather than cash purchases. This forced frugality became a strategic advantage, allowing them to retain talented operators who understood local markets while making them owners with skin in the game.
By 1929, UPS was making 29,000 deliveries per day within a 125-mile radius of downtown Los Angeles. But their grand vision - nationwide delivery service - would take 68 years to achieve, requiring city-by-city, state-by-state battles against the Interstate Commerce Commission's regulatory barriers.
A 76-Year Vision
Jim Casey would work on building UPS for an astounding 76 years. His relentless focus on service, combined with early adoption of technology (from delivery trucks to modern computing systems), created a company culture that survives to this day. The decision to make UPS 100% employee-owned until their 1999 IPO ensured that Casey's spirit of partnership and shared success permeated every level of the organization.
Casey nearly lost it all in 1929 when he sold the company, only to immediately regret the decision. Fortunately, the market crash that year gave him the opportunity to buy back control over four years - a lesson in the danger of selling your life's work.
Today, UPS delivers to over 200 countries and territories worldwide, maintaining delivery reliability rates of 97-98%. The brown trucks that Charlie Soderstrom suggested in 1916 have become synonymous with dependable service - a testament to Jim Casey's understanding that excellence in the fundamentals, compounded over time, builds empires.
Deeply Driven Books (Amazon Affiliate) - 100% of commissions will be donated to help support Children’s Literacy!
https://amzn.to/45R6rxC
Previous Episodes
#15 Samuel Cunard - The Compounding Power of On Time Delivery
https://apple.co/3LpK4HX
#9 Sam Zemurray - The Banana Man (What I Learned)
https://apple.co/47PuxbE
My Life & Work – Henry Ford
https://a.co/d/iFc4jUT
#6 Mars Family (Domination of Chocolate)
https://apple.co/4acYFk7
Sam Walton: Simple Ideas & Deep Business Impacts
https://apple.co/4n1bQaz
#3 Becoming Trader Joe | Business Masterclass from a Legend
https://apple.co/4igkLEh
If you enjoyed this episode, please leave us a review. It would greatly help the show and we thank you in advance for all your tremendous support.
Deeply Driven Newsletter
Welcome!
Deeply Driven Website
Deeply Driven
X
Deeply Driven (@DeeplyDrivenOne) / X
Substack
https://larryslearning.substack.com/
Thanks for listening friends!