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UPS intentionally cut Amazon volumes by over half, with margin data indicating the strategy worked as gross profits and operating cash flow stabilize.
Logistics company United Parcel Service (UPS) decided in early 2025 to scale back its delivery work for e-commerce giant Amazon, citing insufficient profitability despite high revenue. The company ultimately cut its Amazon volume by more than half. This move appears to have worked, as gross profits and operating cash flow are stabilizing and could recover faster than revenue in 2027. Despite soaring fuel costs, UPS's EBITDA and gross margins remain well above 2024 levels, when the Amazon business became untenable. CEO Carol Tomé stated that by "taking control of our destiny," the company's future looks measurably brighter.
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Source：Yahoo财经 · Source Link
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