UPS Is Walking Away From Amazon. Is That a Smart Move?

UPS is slashing its AMZN-related shipping volume by more than 50% through 2026, exiting standard last-mile delivery services for the e-commerce giant that ranks as its largest customer. The parcel carrier is abandoning low-margin Amazon shipments that congested sorting facilities in favor of higher-margin business from small and mid-sized enterprises and healthcare clients.

The strategic shift comes as UPS targets 3% revenue growth and 1% adjusted earnings-per-share growth in 2026—the first time both metrics expand in tandem since 2022. The company is betting that selective customer pruning will improve profitability despite walking away from significant volume.

The move puts UPS in direct contrast with rival FDX, which continues to compete aggressively for e-commerce fulfillment business. AMZN has built out its own logistics network over the past decade, reducing reliance on third-party carriers and giving UPS cover to exit unprofitable contracts.