UPS plans to slash its shipping business with Amazon by half<p>UPS is continuing to withdraw from its business relationship with Amazon. By the second half of 2026, UPS said it will <a data-i13n="elm:context_link;elmt:doNotAffiliate;cpos:1;pos:1" class="no-affiliate-link" href="
https://finance.yahoo.com/news/ups-shares-plunge-plan-slash-143438276.html" data-original-link="
https://finance.yahoo.com/news/ups-shares-plunge-plan-slash-143438276.html">
cut[/url] its shipping volumes for Amazon by more than 50 percent under the companies' revised arrangement.</p>
<p>"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.</p>
<span id="end-legacy-contents"></span><p>Business with Amazon accounted for about 11 percent of UPS' 2024 revenue, which <a data-i13n="elm:context_link;elmt:doNotAffiliate;cpos:2;pos:1" class="no-affiliate-link" href="
https://investors.ups.com/news-events/press-releases/detail/2135/ups-releases-4q-2024-earnings-and-provides-2025-guidance" data-original-link="
https://investors.ups.com/news-events/press-releases/detail/2135/ups-releases-4q-2024-earnings-and-provides-2025-guidance">totaled[/url] $91.1 billion. Amazon was a larger share of UPS' revenue during the peak of the COVID-19 pandemic; in 2020, the retailer was <a data-i13n="elm:context_link;elmt:doNotAffiliate;cpos:3;pos:1" class="no-affiliate-link" href="
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001090727/000109072723000006/ups-20221231.htm" data-original-link="
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001090727/000109072723000006/ups-20221231.htm">
responsible[/url] for 13.3 percent of its annual revenue. UPS shared similar plans to cut back its business with Amazon <a data-i13n="elm:context_link;elmt:doNotAffiliate;cpos:4;pos:1" class="no-affiliate-link" href="
https://www.supplychaindive.com/news/ups-amazon-reduce-delivery-volume-revenue-ties-2023/643768/" data-original-link="
https://www.supplychaindive.com/news/ups-amazon-reduce-delivery-volume-revenue-ties-2023/643768/">
in 2023[/url] as its revenue from the retailer dwindled from quarantine-era levels.</p>
<p>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 <a data-i13n="elm:context_link;elmt:doNotAffiliate;cpos:5;pos:1" class="no-affiliate-link" href="
https://www.cnbc.com/2019/08/07/fedex-to-end-ground-delivery-contract-with-amazon.html" data-original-link="
https://www.cnbc.com/2019/08/07/fedex-to-end-ground-delivery-contract-with-amazon.html">
would not renew[/url] its ground-delivery contract with the big tech partner. A few months later, Amazon <a data-i13n="elm:context_link;elmt:doNotAffiliate;cpos:6;pos:1" class="no-affiliate-link" href="
https://www.cnbc.com/2019/12/16/amazon-blocks-sellers-from-using-fedex-ground-delivery-shipping.html" data-original-link="
https://www.cnbc.com/2019/12/16/amazon-blocks-sellers-from-using-fedex-ground-delivery-shipping.html">
blocked[/url] third-party sellers from using FedEx ground-delivery services.</p>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=rssSource:
UPS plans to slash its shipping business with Amazon by half
