UPS CEO Says No Volume Lost to Amazon Shipping, Points to RFID and Enterprise Ties as Edge
- Aug 1
- 1 min read
On UPS's Q2 earnings call, CEO Carol Tomé said she is “not aware of any volume that we've lost” to Amazon Shipping, the e-commerce giant's delivery service that has been undercutting UPS and FedEx on price. Tomé argued Amazon's strengths lie in lightweight, short-distance urban deliveries, while UPS holds the edge “in every other place” and plans to lean into those segments with capabilities Amazon can't easily match.
UPS posted year-over-year revenue growth in Q2. Tomé credited the company's differentiation in cold chain logistics, returns, and end-to-end visibility, along with deep executive-level customer relationships — more than 300 high-impact executives now engage customers at the CEO and CFO level, not just procurement or supply chain leads. UPS is also renewing shipper contracts that extend “long past 2028.”
RFID-enabled tracking from the point of origin is a key growth lever: it covers more than 2.2 million pieces of volume per day and reportedly helped UPS win a high-end jeweler away from a competitor. “Where we have RFID at the point of origin, we have seen no churn,” Tomé said, calling it “a really powerful way to grow.”
UPS continues to shift its mix toward higher-margin segments — healthcare and small/medium business, where average daily volume grew 4.3% year over year in Q2 (a strategy FedEx is also pursuing). In parallel, UPS has deliberately reduced the volume it delivers for Amazon, which now accounts for 9% of UPS revenue, down about 100 basis points from a year ago and well below its COVID-era peak of over 13%.
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