UPS Cut Amazon Volumes on Purpose. The Margin Data Says It Worked.
Sometimes, the tough choice in the short run is the smart one in the long run.
Overview
Most companies want to do more business. Not all business is necessarily worth doing though.
That's the dilemma that logistics outfit United Parcel Service (NYSE: UPS) had been facing for some time before deciding early last year to scale back the amount of delivery work it was doing for e-commerce giant Amazon (NASDAQ: AMZN). While this relationship generated plenty of revenue, the company felt the revenue it generated was no longer profitable enough.
Details
That's why, all told, it ultimately cut its Amazon volume by more than half. Here's what this could mean for the stock.
Source
Originally published at www.fool.com.
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