- Amazon is UPS’s largest customer but not its most profitable
- Oops says it will cut its Amazon deal by over 50% to help profitability
- Amazon will “continue to cooperate with [UPS]”
UPS has announced plans to reduce its amounts of shipping for Amazon by “more than 50%” under a revised agreement with the global E -trading giant.
The change comes by the second half of 2026, when UPS CEO Carol Tomé indicates that the reason is that Amazon is not the most profitable customer of the delivery company, despite its largest.
Amazon accounted for only 11% of UPS’s revenue of $ 91.1 billion.
Oops to cut down on Amazon shippings
Tomé said: “We are making business and operational changes that, along with the fundamental changes we have already made to become a more profitable and differentiated, which, together with the fundamental changes, has already made a more profitable and differentiated changes, There, along with the fundamental changes we have made to become a more profitable growing in the best parts of the market. “
The company’s latest full quarter brought up $ 25.3 billion in revenue, up only 1.5% year-over-year. Current predictions suggest that the total annual turnover of 2025 could fall to $ 89.0 billion, down from $ 91.1 billion in 2024.
Amazon -Talmand Kelly Nantel told Techradar Pro: “Due to their operational needs, UPS requested a reduction in volume and we certainly respect their decision. We continue to work with them and many other carriers to serve our customers. “
This is not the first time Amazon has lost delivery tracks with a third-party company-in 2019, FedEx completed its contract with the retail giant.
Amazon has also been busy building its own delivery team, as the company, together with its own fleet of vehicles, also runs a delivery service party to help SMBs all over the United States play their role in delivery in the last kilometer, giving them another Revenue stream.
Oops has also been busy reducing the cost of tackling poor economic growth. In January 2024, it dismissed 12,000 workers as part of an effort to itch $ 1 billion in savings.
Amazon told us that the company had previously offered to increase UPS’s quantities and that it has a strong collaboration with the delivery partner.
Oops refused to give additional comments beyond what was announced on its earnings call.
