UPS Is Walking Away From Amazon. Is That a Smart Move?

UPS (NYSE: UPS), one of the world's largest shipping couriers, significantly reduced its dependence on Amazon (NASDAQ: AMZN) over the past two years. In early 2025, UPS announced it would reduce its Amazon-related shipping volume by more than 50% through 2026. By mid-2026, UPS had phased out its standard last-mile delivery services for Amazon across its major markets, reducing its shipment volume by millions of pieces per day.Amazon had been UPS's largest customer, so it might initially seem like an odd move to eliminate those services. However, those last-mile shipments clogged its sorting facilities and generated lower profits than its longer-range deliveries. Therefore, UPS was willing to sacrifice its near-term revenue to stabilize its long-term margins. Let's see if that was the right call.Image source: UPS.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool