Amazon and UPS might be finally getting a divorce

Network AssociationBehind the Wheel
Written By Jennifer Joslyn

Many have speculated that the day would come when Amazon and its largest vendor, UPS Inc., would part ways. Amazon had already liked FedEx to the curb in 2019, and UPS quickly filled in. But Amazon Logistics is expanding rapidly and it really is only a matter of time before it brings the traffic in-house instead of outsourcing. Currently, Amazon accounts for about 11% of the company’s annual revenue which rounds out at about $102 billion.

The real kicker is customer volume figures. UPS will not disclose the accurate numbers, but Ravi Shanker, a Morgan Stanley & Co. transportation analyst, is estimating that Amazon accounts for nearly 40% of UPS’ domestic volumes.

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Jennifer Joslyn
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