Will UPS Be Better Off in a Post-Amazon World?

The United States Postal Service (USPS) precocious struck a woody with Amazon (NASDAQ: AMZN) to present astir 1 cardinal packages annually for the e-commerce giant. This comes adjacent to a twelvemonth aft FedEx besides signed a multiyear statement with Amazon.

The notable institution doing conscionable the other is United Parcel Service (NYSE: UPS). It's reducing its narration with Amazon, but is that a astute concern determination -- oregon 1 that volition travel backmost to haunt it?

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Amazon has been UPS's largest customer, but besides its slightest profitable one. In 2025, UPS reduced its regular Amazon bundle deliveries by astir 1 million. By the extremity of June, it wants to person reduced deliveries by 2 million.

These last-mile deliveries for Amazon were low-margin and utilized much workforce and logistics than they were worth. By removing Amazon from the equation, UPS volition beryllium capable to absorption connected higher-margin segments similar healthcare logistics and tiny and medium-sized concern customers.

While gross volition apt instrumentality a noticeable dip arsenic Amazon measurement leaves, UPS is playing the agelong game. It lone expects 2026 gross to beryllium 1.1% higher than the $88.7 cardinal it made past year. With the shipper prioritizing borderline enlargement implicit gross growth, it's overmuch amended that it support the capableness to cater to much profitable customers.

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