UPS expects to do less business with Amazon in the coming year.
The e-commerce giant is continuing to reduce its dependence on delivery partners as it expands its in-house logistics operations.
- Amazon is continuing to build out its logistics network in a bid to gain more control over its delivery capabilities.
- Amazon's share of parcel volumes in the U.S. beat UPS rival FedEx in 2021 after growing by 22% that year.
- UPS has been expanding its operations beyond e-commerce to shore up its profit margins.
- Amazon and UPS have done less business with each other in recent years as their interests have diverged.
- UPS handled 1.3 billion Amazon packages in 2022, down from 1.41 billion the year before, according to estimates from MWPVL International.
- "We'll continue on a mutually agreed path to glide that business down in 2023," said Amazon CFO Brian Newman during the company's earnings call on Jan. 31.
