UPS Shares Drop After Amazon Launches Competing Supply Chain Service
UPS shares fell by 9.8% following the announcement that Amazon has launched Amazon Supply Chain Services (ASCS), which directly targets small and medium-sized businesses, a key market for UPS. The move threatens UPS's core business, as Amazon aims to provide logistics and shipping services to external customers, similar to how Amazon Web Services operates. UPS has been reducing its delivery volumes for Amazon, focusing instead on more profitable segments.
Topics: Amazon logistics market competition supply chain services UPS