Bloomberg ran a long piece purporting to tell the story of how American Express came to lose to Costco co-brand deal, and along the way details the challenges American Express faces to its business model.
It begins with narrating the cultural differences between American Express and Costco and then suggests that an insult may have caused American Express to lose the deal.
American Express says the deal ended for purely economic reasons, and I suspect that’s right. I’ve suggested that as costly as it was for American Express to lose Costco, it would have been more costly to retain Costco.