UPS is hugely scaling back its Amazon shipping deal
Posted by:
Emma Walker
UPS, a global shipping company, has recently announced a significant cut in its shipping volumes for Amazon by “more than 50%”. The decision comes as a part of a revised agreement highlighting that Amazon, despite being UPS’s biggest customer, isn’t the most profitable. Amazon accounted for only 11% of UPS’s $91.1 billion revenue in 2024.
UPS’s CEO, Carol Tomé, stated that operational changes aim to enhance profitability and agility, projecting a decrease in total annual revenue for 2025 to $89.0 billion. Meanwhile, Amazon spokesperson Kelly Nantel expressed respect for UPS’s decision and emphasized the continuation of their partnership with UPS, alongside other carriers to serve customers.
This move follows a trend where Amazon has been investing in its delivery services, including establishing its own delivery team and operating a Delivery Service Partner program. UPS, on the other hand, has been focused on cost-cutting strategies, like laying off 12,000 workers in January 2024 to save $1 billion.
For comments on this development, TechRadar Pro has reached out to UPS and Amazon, but no immediate responses have been received.
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