UPS Axes Amazon Deliveries Amid Profit Push
United Parcel Service (UPS) has significantly reduced its dependence on Amazon over the past two years, phasing out standard last-mile delivery services for the e-commerce giant across its major markets by mid-2026.
This move may seem counterintuitive given that Amazon was UPS's largest customer, accounting for about 11% of its revenue in 2024 and 2025. However, those high-volume, low-margin shipments clogged UPS's sorting facilities and generated lower profits than its longer-range deliveries.
UPS is now focused on securing higher-margin orders from small- to medium-sized businesses and healthcare customers to offset its loss of Amazon's orders.
The company expects its revenue to rise 3% to $91.2 billion in 2026, with adjusted earnings per share growing 1% to $7.22. This growth would mark the first time its revenue and adjusted EPS have grown in tandem since 2022.