UPS is continuous to withdraw from its enterprise relationship with Amazon. By the second half of 2026, UPS mentioned it should its delivery volumes for Amazon by greater than 50 p.c underneath the businesses’ revised association.
“Amazon is our largest buyer, nevertheless it’s not our most worthwhile buyer,” CEO Carol Tomé mentioned throughout an investor name in regards to the delivery and logistics firm’s newest financials.
Enterprise with Amazon accounted for about 11 p.c of UPS’ 2024 income, which totaled $91.1 billion. Amazon was a bigger share of UPS’ income in the course of the peak of the COVID-19 pandemic; in 2020, the retailer was for 13.3 p.c of its annual income. UPS shared comparable plans to chop again its enterprise with Amazon as its income from the retailer dwindled from quarantine-era ranges.
Though Amazon does depend on outdoors firms for some delivery, these relationships have generally turned tenuous because the retailer continues to develop its in-house choices for delivering orders. In 2019, FedEx took the same path of uncoupling its companies from Amazon when it introduced that it its ground-delivery contract with the large tech associate. A couple of months later, Amazon third-party sellers from utilizing FedEx ground-delivery companies.
This text initially 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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