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UPS plans to slash its shipping business with Amazon by half
UPS plans to slash its shipping business with Amazon by half

UPS is continuing to withdraw from its business relationship with Amazon. By the second half of 2026, UPS said it will cut its shipping volumes for Amazon by more than 50 percent under the companies' revised arrangement.
"Amazon is our largest customer, but it’s not our most profitable customer," CEO Carol Tomé said during an investor call about the shipping and logistics company's latest financials.
Business with Amazon accounted for about 11 percent of UPS' 2024 revenue, which totaled $91.1 billion. Amazon was a larger share of UPS' revenue during the peak of the COVID-19 pandemic; in 2020, the retailer was responsible for 13.3 percent of its annual revenue. UPS shared similar plans to cut back its business with Amazon in 2023 as its revenue from the retailer dwindled from quarantine-era levels.
Although Amazon does rely on outside companies for some shipping, those relationships have sometimes turned tenuous as the retailer continues to grow its in-house options for delivering orders. In 2019, FedEx took a similar path of uncoupling its services from Amazon when it announced that it would not renew its ground-delivery contract with the big tech partner. A few months later, Amazon blocked third-party sellers from using FedEx ground-delivery services.This article originally appeared on Engadget at https://www.engadget.com/big-tech/ups-plans-to-slash-its-shipping-business-with-amazon-by-half-185913504.html?src=rss

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