UPS finance chief says Amazon doesn’t worry him

By | February 3, 2016

United Parcel Service (UPS) reported a big earnings beat—its highest ever fourth-quarter earnings—thanks to its growth in international package delivery. Revenue, however, came in light of estimates.


Still, one major headwind continues to be a cause for concern: Amazon (AMZN). Because of increased costs and package volume, Amazon has been transforming from UPS’s biggest consumer to its biggest competitor. In December, the Wall Street Journal reported that rising costs and package volume have sparked Amazon to develop its own delivery routes, build its own freight operation, and prepare for drone deliveries. 

Peretz denied claims of animosity between the two companies, but says he believes that UPS is the clear choice for consumers. “The Amazon relationship is mutually beneficial, and they are a valued customer to UPS,” he says. “The whole space of e-commerce is a great position for UPS because we want to become the shipper of choice. We’re adding things to the market that didn’t exist before.”