- UPS said Thursday that he would reduce his belongings with Amazon in two in mid-2026.
- CEO Carol Tomé said that Amazon’s business with UPS, while Big became less profitable.
- Amazon has built its own logistics infrastructure in recent years.
Ups The CEO said Thursday that this would reduce the number of Amazon packages that he manages as the profit of these narrowed expeditions.
“It was not their request,” Carol Tomé said on an investor call. “It was us. It was by taking control of our destiny.”
The shares plunged up to 18%.
The navigation giant declared that he would reduce his activities with his greatest client in two in June 2026. The financial director of the UPS, Brian Dykes, said on the call that the Amazon shipments represented about 20 % of UPS volume in the United States. The company had declared results of the fourth quarter before the opening of the stock market.
“Amazon is our biggest client, but it is not our most profitable client,” said Tomé during the call. “Its margin is very dilutive for American national companies.”
Tomé said UPS used recent contract negotiations with Amazon to reach a withdrawal agreement. She added that keeping the same amount of business with the retail giant “would probably lead to diminished yields”.
“Due to their operational needs, UPS has requested a volume reduction, and we certainly respect their decision,” Amazon spokesperson for Business Insider told. “We will continue to associate with them and many other carriers to serve our customers.”
Goldman Sachs analysts said Thursday that even if Amazon’s move would cost business in the short term, the company could use it to “focus on higher volumes and improving margins”.
Tomé said that the remaining half of UPS affairs with the electronic commerce giant included manipulation Refers for Amazon – Something ups does “very, very good” and it is unlikely that it disappears anytime soon.
“We have 5,200 UPS store locations that allow Amazon customers to return their Amazon packages,” she said.
Amazon has spent years building its logistics services, including its warehouses and aircraft fleet.
The company used these resources to offer its own shipping options. At the end of last year, for example, Amazon launched a new option to make sellers on its website provide products from the source factories to customers.
Amazon also offers shipping options to sellers who do not even sell on his website.