Will UPS Be Better Off in a Post-Amazon World?

By Stefon Walters – Apr 13, 2026 at 6:45AM ESTKey PointsUnited Parcel Service is reducing the number of packages it delivers for Amazon.The shipping company wants to reduce its daily Amazon deliveries by 2 million from last year.Healthcare logistics and medium-sized businesses are more profitable for UPS.The United States Postal Service (USPS) recently struck a deal with Amazon (AMZN +2.05%) to deliver around 1 billion packages annually for the e-commerce giant. This comes close to a year after FedEx also signed a multiyear agreement with Amazon. The notable company doing just the opposite is United Parcel Service (UPS +0.02%). It's reducing its relationship with Amazon, but is that a smart business move -- or one that will come back to haunt it? Image source: The Motley Fool. Amazon has been UPS's largest customer, but also its least profitable one. In 2025, UPS reduced its daily Amazon package deliveries by around 1 million. By the end of June, it wants to have reduced deliveries by 2 million. These last-mile deliveries for Amazon were low-margin and used more workforce and logistics than they were worth. By removing Amazon from the equation, UPS will be able to focus on higher-margin segments like healthcare logistics and small and medium-sized business customers. While revenue will likely take a noticeable dip as Amazon volume leaves, UPS is playing the long game. It only expects 2026 revenue to be 1.1% higher than the $88.7 billion it made last year. With the shipper prioritizing margin expansion over revenue growth, it's much better that it maintain the capacity to cater to more profitable customers.Read NextApr 10, 2026 •By Tony DongBest 4 Shipping ETFs for 2026 and How to InvestApr 10, 2026 •By Lee Samaha2 Red Flags Waving Over UPS Cash FlowApr 7, 2026 •By Parkev Tatevosian, CFAShould Investors Buy UPS Stock Today?Apr 2, 2026 •By Lee SamahaHere's Why UPS Shares Declined by 15% in MarchMar 31, 2026 •By Reuben Gregg Brewer2 Magnificent S&P 500 Dividend Stocks Down as Much as 55% to Buy and Hold ForeverMar 30, 2026 •By Keith Speights3 Monster Dividend Stocks to Hold for the Next 10 YearsAbout the AuthorStefon Walters is a contributing Motley Fool stock market analyst covering publicly traded companies across technology, consumer goods, and financials, as well as retirement planning. Stefon is a published author and has more than a decade of experience teaching financial literacy. He holds a bachelor’s degree in economics from the University of North Carolina at Chapel Hill.TMFStefonWStocks MentionedUnited Parcel ServiceNYSE: UPS$101.70(+0.06%)+$0.06AmazonNASDAQ: AMZN$238.38(+2.02%)+$4.73*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.