UPS plunged after saying it would deliver fewer Amazon packages. Its CEO says it’s about ‘taking control of our destiny.’

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UPS plunged after saying it would deliver fewer

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packages. Its CEO says it’s about ‘taking control of our destiny.’

UPS said it will deliver fewer

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packages.Justin Sullivan/Getty Images

UPS said Thursday that it would cut its business with

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in half by mid-2026.

CEO Carol Tomé said

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’s business with UPS, while big, was becoming less profitable.

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has been building out its own logistics infrastructure in recent years.

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CEO said Thursday that it would reduce the number of

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packages it handles as profit from those shipments shrinks.

“This was not their ask,”

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said on an investor call. “This was us. This was UPS taking control of our destiny.”

Shares plunged by as much as 18%.

The shipping giant said it would cut its business with its largest customer in half by June 2026. UPS’s chief financial officer, Brian Dykes, said on the call that

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shipments made up about 20% of UPS’s volume in the US. The company had reported fourth-quarter results before the stock market opened.

“

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is our largest customer, but it’s not our most profitable customer,” Tomé said on the call. “Its margin is very dilutive to the US domestic business.”

Tomé said UPS used recent contract negotiations with

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to reach an agreement on the drawdown. She added that keeping the same amount of business with the retail giant would “likely result in diminishing returns.”

“Due to their operational needs, UPS requested a reduction in volume, and we certainly respect their decision,” an

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spokesperson told Business Insider. “We’ll continue to partner with them and many other carriers to serve our customers.”

Analysts at Goldman Sachs said on Thursday that while the move away from

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would cost UPS business in the short run, the company could use it to “focus in on higher-yielding, margin-enhancing volumes.”

Tomé said that the remaining half of UPS’s business with the e-commerce giant included handling some

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— something UPS does “very, very well” and is unlikely to go away anytime soon.

“We have 5,200 UPS store locations that make it very convenient for customers of

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to return their

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packages,” she said.

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has spent years building its logistics services, including its warehouses and its aircraft fleet.

The company has used those resources to offer its own shipping options. Late last year, for instance,

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launched a new option for sellers on its website to deliver products from source factories to customers.

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also offers shipping options to sellers

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.

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#UPS #plunged #deliver #

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#packages #CEO #control #destiny

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