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.

Read more from Freight Waves ▶

You also might like...
Rivian Stock Sees Modest Rebound Amid Investor Losses and Analyst Concerns
Rivian Stock Sees Modest Rebound Amid Investor Losses and Analyst Concerns

Rivian Automotive Inc. saw its shares bounce back slightly on Monday after a tough week marked by disappointing earnings.

Amazon Web Services Mexico to Invest $5 Billion in Data Centers
Amazon Web Services Mexico to Invest $5 Billion in Data Centers

Amazon Web Services Mexico (AWS), a branch of Amazon.com Inc., plans to invest over $5 billion in constructing a series of data centers in Mexico, catering to the rising demand for cloud services amid technological advancements.

Fire Incident Sparks Evacuation Near Amazon Fulfillment Center in Illinois
Fire Incident Sparks Evacuation Near Amazon Fulfillment Center in Illinois

Employees at an Amazon fulfillment center in Markham, Illinois, experienced an evacuation due to a nearby fire on Thursday morning.

Amazon, SpaceX, and Trader Joe's Challenge Constitutionality of Labor Board in Legal Battles
Amazon, SpaceX, and Trader Joe's Challenge Constitutionality of Labor Board in Legal Battles

Amazon, along with SpaceX and Trader Joe's, is challenging the constitutionality of the National Labor Relations Board (NLRB) in legal filings.

Trucking Owner Pleads Guilty to Scheme Targeting Amazon and Bath & Body Works Shipments
Trucking Owner Pleads Guilty to Scheme Targeting Amazon and Bath & Body Works Shipments

An Ohio trucking company owner confessed to wire fraud in a federal court for participating in a scam that cheated shippers, including Amazon and Bath & Body Works.

ATI Pilots' Union Pushes for Improved Contract Amid Amazon's Rapid Growth
ATI Pilots' Union Pushes for Improved Contract Amid Amazon's Rapid Growth

In a recent interview, the chair of the pilots' union at Air Transport International (ATI), a key air carrier in Amazon's delivery network, expressed frustration over delayed contract negotiations.

Amazon Announces Limited Layoffs in Buy with Prime Unit Amid Ongoing Restructuring
Amazon Announces Limited Layoffs in Buy with Prime Unit Amid Ongoing Restructuring

Amazon.com has announced layoffs affecting fewer than 5% of its Buy with Prime unit employees.

Amazon Initiates Job Cuts in Prime Video and MGM Studios Divisions
Amazon Initiates Job Cuts in Prime Video and MGM Studios Divisions

Amazon is undergoing layoffs in its Prime Video and MGM Studios divisions, with hundreds of employees affected.

Amazon Slashes Fees to Compete with Shein in Fast-Fashion Market
Amazon Slashes Fees to Compete with Shein in Fast-Fashion Market

Amazon is feeling the pressure from fast-fashion app Shein and has decided to cut referral fees for cheap clothing items in an effort to compete.

Spanish Amazon Workers Plan Strike Over Wages Ahead of Epiphany Holiday
Spanish Amazon Workers Plan Strike Over Wages Ahead of Epiphany Holiday

Spanish workers at an Amazon logistics center in northern Spain, near the border with France, are planning a three-day strike from January 3 to 5 ahead of the Epiphany feast day.

Deforestation in Brazil's Amazon Declines by 22.3% in the Past Year, but Challenges Remain for Lula's Zero Deforestation Goal
Deforestation in Brazil's Amazon Declines by 22.3% in the Past Year, but Challenges Remain for Lula's Zero Deforestation Goal

Deforestation in Brazil's Amazon decreased by 22.3% in the 12 months through July, marking the smallest area cleared since 2018, according to government data from the Brazilian space research agency Inpe.

Amazon Allows Supervisors to Terminate Employees Resisting Return-to-Office Policy
Amazon Allows Supervisors to Terminate Employees Resisting Return-to-Office Policy

Amazon has introduced new guidelines allowing supervisors to terminate employees who resist the return-to-office directive.

FTC Chair Lina Khan Defends Amazon Antitrust Lawsuit, Citing Competition Protection
FTC Chair Lina Khan Defends Amazon Antitrust Lawsuit, Citing Competition Protection

FTC Chair Lina Khan defended the agency's antitrust lawsuit against Amazon, emphasizing that it aims to protect free and fair competition rather than punish success.

Amazon Plans to Hire 250,000 Logistics Workers for Holiday Season Amid Retail Hiring Decline
Amazon Plans to Hire 250,000 Logistics Workers for Holiday Season Amid Retail Hiring Decline

Amazon.com Inc. is planning to hire 250,000 logistics workers for the upcoming holiday season.

Revisiting Amazon's Anticipatory Shipping Patent: The Evolution and Potential Future Applications
Revisiting Amazon's Anticipatory Shipping Patent: The Evolution and Potential Future Applications

Amazon's anticipatory shipping patent, which generated interest a decade ago, is now being revisited.

Amazon's Cutting-Edge Robotics Fulfillment Center Debuts in Detroit
Amazon's Cutting-Edge Robotics Fulfillment Center Debuts in Detroit

Amazon has opened its first robotics fulfillment center in Detroit, covering 823,000 square feet and employing over 1,200 workers.

Amazon Accelerates Fast-Delivery Capabilities in the Post-COVID Era
Amazon Accelerates Fast-Delivery Capabilities in the Post-COVID Era

Amazon.com Inc. is doubling down on its fast-delivery capabilities for its Prime service following a temporary slowdown during the pandemic.

Prime Day Insights: Unraveling the Supply Chain Implications for Peak 2023
Prime Day Insights: Unraveling the Supply Chain Implications for Peak 2023

The results of Amazon Prime Day on July 11-12 indicate that Peak 2023 is likely to be a strong and busy season for the supply chain.

Amazon's Carbon Emissions Dip for the First Time Due to Renewable Energy Purchases and Slower Sales Growth
Amazon's Carbon Emissions Dip for the First Time Due to Renewable Energy Purchases and Slower Sales Growth

Amazon reports a decrease in carbon emissions for the first time since the company began reporting the figure.

Tech Giants Commit to AI Safeguards in Deal with Biden Administration, But Regulation Concerns Remain
Tech Giants Commit to AI Safeguards in Deal with Biden Administration, But Regulation Concerns Remain

Several major tech companies, including Amazon, Google, Meta, Microsoft, and others, have made voluntary commitments to meet a set of artificial intelligence (AI) safeguards brokered by the White House.

Amazon Offers Delivery Partnership to Main Street Businesses
Amazon Offers Delivery Partnership to Main Street Businesses

Amazon is seeking to recruit 2,500 small businesses across 23 states in the US to participate in its "Amazon Hub Delivery" program, aiming to enhance package delivery capabilities.

150 Million Packages Delivered by Rivian Electric Vehicles
150 Million Packages Delivered by Rivian Electric Vehicles

Amazon has announced that it has successfully delivered over 150 million packages using Rivian's electric vehicles (EVs).

Amazon Explores Crowd-Sourcing eFulfillment to Local Businesses
Amazon Explores Crowd-Sourcing eFulfillment to Local Businesses

Amazon is exploring a new eFulfillment strategy called Amazon Hub Delivery, which aims to utilize small businesses as delivery partners to expand its fulfillment reach.

Tesla Charging Network Nears Industry Standard Status
Tesla Charging Network Nears Industry Standard Status

Rivian, an electric vehicle manufacturer, has announced that it will follow in the footsteps of General Motors and Ford by joining Tesla's charging network in the coming year.

Amazon has unveiled its new complex, known as "HQ2," in Virginia
Amazon has unveiled its new complex, known as "HQ2," in Virginia

Amazon has introduced the first phase of its new headquarters complex, "HQ2," in Arlington, Virginia.

Eastern Oregon Grants Amazon $1 Billion in Tax Breaks for New Data Centers
Eastern Oregon Grants Amazon $1 Billion in Tax Breaks for New Data Centers

Amazon has been granted tax breaks worth an estimated $1 billion by officials in a remote county in northeastern Oregon to establish five new data centers.

OSHA Holds Amazon Accountable for High Worker Injury Rate
OSHA Holds Amazon Accountable for High Worker Injury Rate

A new study has revealed that Amazon has significantly higher worker injury rates compared to other major companies, with 6.9 out of 100 workers being injured in 2022.

Teamsters Claim Unionization of Amazon Drivers in CA
Teamsters Claim Unionization of Amazon Drivers in CA

The Teamsters Union and a company called Battle-Tested Strategies reportedly reached a deal to improve wages and address health and safety standards for 84 Amazon delivery drivers in California.

Amazon Plans to Change Models for Regional Fulfillment
Amazon Plans to Change Models for Regional Fulfillment

Amazon has fully transitioned to a regionalized model that aims to improve delivery times and reduce costs for the company.

Amazon's Marketplace E-Fraud Battle Costs $1.2 Billion
Amazon's Marketplace E-Fraud Battle Costs $1.2 Billion

It has been revealed that retail giant Amazon has spent over $1 billion to combat fraud and fake products on its website.

Jennifer Joslyn
Previous

Driver shortage grows after 11k jobs disappear in September
Next

After a steady climb since 2020 lows, trucking employment dropped 11,000 jobs in September