Amazon Threatens to Abandon USPS Deal if Talks Fail
Amazon is reconsidering its long-standing partnership with the United States Postal Service (USPS) as negotiations stall. This could mark a significant shift in logistics for the retail giant, which has relied on the USPS for over three decades.
Negotiation Stalemate
Reports indicate that discussions between Amazon and USPS Postmaster General David Steiner have faced obstacles. According to sources, the USPS plans to “auction off last-mile delivery contracts,” reducing the likelihood of a contract extension. Amazon, initially hoping to renew its agreement set to expire on October 1, 2026, is now evaluating its options.
Amazon’s Delivery Network
- Amazon has managed 6.3 billion parcels in 2024, ranking second only to USPS, which handled 6.9 billion parcels.
- If the current trend continues, Amazon could surpass USPS by 2028, projecting 8.4 billion shipments compared to USPS’s estimated 8.3 billion.
- In 2025, Amazon contributed approximately $6 billion to USPS revenues, accounting for 7.5% of the Postal Service’s total earnings.
Despite these developments, Amazon spokesperson Steve Kelly emphasized the company’s commitment to maintaining a working relationship with USPS. Kelly stated, “The USPS is a longstanding and trusted partner,” expressing disappointment over the shift in USPS’s strategy after extensive negotiations.
Future Implications
If Amazon ultimately decides to end its partnership with USPS, it will enhance its own delivery capabilities. This move could reshape the logistics landscape, posing a direct challenge to USPS operations.
In conclusion, while Amazon’s future actions regarding the USPS remain uncertain, the situation highlights the evolving dynamics of delivery services in an increasingly competitive market.
