United Parcel Service deliberately cut its Amazon delivery volume by more than half, and the margin data suggests the move worked. The company began scaling back the e-commerce work early last year after concluding the revenue it generated was no longer profitable enough. Since then sales are down slightly, but gross profits and operating cash flow appear to be stabilizing and could recover faster than revenue is expected to in 2027. Despite soaring fuel costs in the meantime, UPS's EBITDA margins and gross margins are both holding up well above 2024 levels, when doing so much business with Amazon became untenable. CEO Carol Tomé said that by taking control of its destiny, the company's future now looks measurably brighter than it did just a couple of years ago, though a return to 2022's profitability is seen as very unlikely.
Amazon.com IncUPS deliberately cut its Amazon delivery volume by more than half, reducing a source of Amazon e-commerce shipping capacity.
NVIDIA Corporation
United Parcel Service IncCutting unprofitable Amazon volume is stabilizing gross profits, EBITDA margins, and operating cash flow above 2024 levels.
