UPS Ditches Amazon Deliveries in Bid for Higher Margins
UPS, one of the world's largest shipping couriers, has significantly reduced its dependence on Amazon over the past two years. In early 2025, UPS announced it would reduce its Amazon-related shipping volume by more than 50% through 2026.
The company had been generating about 11% of its revenue from Amazon in 2024 and 2025, but this percentage dipped below 9% in the first half of 2026 and is expected to shrink further.
UPS has phased out standard last-mile delivery services for Amazon across its major markets, reducing shipment volume by millions of pieces per day. This decision was made to stabilize long-term margins, which were being impacted by lower profits from last-mile shipments compared to longer-range deliveries.
The company is focusing on securing higher-margin orders from small- to medium-sized businesses and healthcare customers to offset the loss of Amazon's orders. It has also trimmed its workforce, closed some facilities, and automated more tasks to streamline its business.