UPS plans to cut its Amazon delivery volume by over 50% by late 2026 due to a strategic decision to reduce reliance on a customer that is less profitable, despite being the largest. CEO Carol Tomé noted that Amazon’s margins negatively affect UPS’s domestic business. The agreement reflects UPS’s shift towards more lucrative sectors, such as healthcare and small businesses. Although Amazon will still constitute a significant portion of UPS’s business, the anticipated volume decline is expected to improve profitability through higher revenue per package.

Source: https://www.supplychaindive.com/news/ups-amazon-volume-reduction-q4-2024-earnings/738749/