Amazon Is Reportedly Preparing to Cut Ties With USPS as Negotiations Stall
By Jibin Joseph, 13 hrs ago
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Amazon reportedly wants a four-year contract extension, while USPS wants to hold an auction for its services. If negotiations break down, the 30-year partnership could end next year,
Amazon is planning to expand its own delivery network and cut ties with the US Postal Service if negotiations with the longstanding partner don't succeed, The Washington Post reports.
The contract with USPS is set to expire on Oct. 1, 2026, and Amazon was reportedly seeking a four-year extension when the talks began. However, after a year of negotiations, the e-commerce giant says it was surprised to find out that USPS wanted to hold an auction for some of its shipping capacity.
Negotiations with USPS are still underway, but Amazon says it will evaluate all its remaining options to ensure its delivery system remains unaffected.
"Given the change of direction and the uncertainty it adds to our delivery network, we're evaluating all of our options that would ensure we can continue to deliver for our customers," Amazon spokesperson Steve Kelly tells The Verge.
One of the options is to end ties with USPS next year, sources tell The Post, which is owned by Amazon co-founder Jeff Bezos.
That could be a huge financial loss for USPS, which hasn't been profitable since 2022. The e-commerce giant spends more than $6 billion annually on its USPS deliveries, accounting for nearly 7.5% of the agency's annual revenue.
Amazon, on the other hand, could just grow its delivery network. According to Pitney Bowes, Amazon completed 6.3 billion package deliveries in 2024, second only to USPS, which completed 6.9 billion. By 2028, though, Amazon is expected to overtake USPS with 8.4 billion deliveries compared to the latter's 8.3 billion.
