Could Amazon and USPS' Failing Contract Negotiations Help UPS and FedEx?

The big problem for package delivery is the so-called "last mile." Placing a package at a customer's door is the hard part, and large businesses like United Parcel Service (NYSE: UPS), FedEx (NYSE: FDX), and the U.S. Postal Service have built massive distribution networks to accomplish it. Amazon (NASDAQ: AMZN) built its own delivery network, too, but it continues to use other delivery services. Only, other businesses aren't as willing to work with Amazon anymore. Here's what you need to think about as you look at the breakdown in contract negotiations between the U.S. Postal Service (USPS) and Amazon.The move by the USPS to walk away from contract talks with Amazon follows the 2025 decision by UPS to reduce the number of packages it carries for Amazon by 50%. The move by UPS was directly related to profitability. The parcel delivery service stated it was looking to reduce its exposure to high-volume customers with business that offered low profit margins. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool