Logistics deal boosts stocks: Amazon replaces UPS with FedEx for parcel deliveries!

E-commerce giant Amazon has struck a far-reaching deal with FedEx to close delivery gaps caused by UPS 's planned withdrawal, according to a Business Insider report.

Amazon is reacting to UPS's decision to reduce shipping volume for the e-commerce giant by more than 50 percent by the second half of 2026. This is due to UPS's strategic realignment toward more profitable deliveries, particularly for heavy, long-distance shipments. As part of this, UPS plans to eliminate 20,000 jobs and close 73 locations – a cost-cutting measure expected to generate approximately $3.5 billion.