Amazon’s Growth Ambition Threatens UPS, Fedex Prospects

Amazon remains United Parcel Service’s main customer, but the ecommerce giant continues to take market share from the delivery company, representing a threat to UPS’ foreseeable future, analysts say. UPS saw revenue coming from Amazon, its main customer, decline by 3% in 2023, and that number will keep going down, Citi analyst Christian Wetherbee tells WSJ. Amazon will continue moving packages to its own infrastructure, with competitor players such as Fedex set to be affected by it in a similar way, Evercore analyst Jonathan Chappell says. “Amazon is also chasing smaller companies and offering logistics services that don’t sell on the platform and chasing, so it’s a bigger issue,” says Neil Saunders, managing director of GlobalData. UPS shares drop 7.4% to $146.37.

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