UPS’s New CEO Walks Into an Amazon Squeeze Magnified by Pandemic
- Carol Tomé is first woman to run courier in 112-year history
- Former Home Depot CFO has ‘reputation for data-driven answers’
A United Parcel Service Inc. delivery driver wears a protective mask while operating a delivery truck in Louisville, Kentucky.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
As Carol Tomé takes over as chief executive officer of United Parcel Service Inc. on Monday, she inherits the Amazon dilemma: The same online shopping explosion that is increasing delivery volume also is squeezing profit margins.
How the former finance chief at Home Depot Inc. solves the conundrum -- which has been magnified by the coronavirus pandemic -- is likely to define her tenure at UPS. Prominent voices on Wall Street are already recommending that she reject some business from Amazon.com Inc., which is a significant customer as well as a burgeoning competitor.