UPS & Amazon’s relationship is getting complicated
Amazon has been a top customer of UPS, but 2023 will bring change on the horizon. Both companies have mutually agreed to cut back on its relationship as Amazon builds its own logistics empire and UPS works to grow segments of business outside of e-commerce.
UPS (United Parcel Service) and Amazon have a complex relationship. On one hand, UPS is one of the main delivery partners for Amazon, helping to deliver a significant portion of the e-commerce giant's packages to customers around the world. On the other hand, Amazon is increasingly building up its own delivery infrastructure, including its own fleet of planes, trucks, and delivery drivers, which has the potential to compete with UPS and other traditional delivery companies. In recent years, there have been reports of tension between Amazon and UPS over pricing and other issues, with Amazon reportedly seeking to negotiate lower rates from UPS and other delivery companies.
United Parcel Service (UPS) reported a disappointing start to the year with first-quarter earnings revealing a 5.3% drop in revenue and a 31.5% plunge in operating profit compared to last year.