After more than 30 years, Amazon may be cutting ties with the United States Postal Service as it looks to expand its own delivery network, reported Washington PostNegotiations between Amazon and Trump-appointed USPS Postmaster General David Steiner have reportedly stalled, forcing Amazon to consider ending the partnership altogether, the outlet, owned by Amazon founder Jeff Bezos, said, citing anonymous sources,
Washington Post Reporter Jacob Boggess wrote in a post on Bluesky that “this was not Amazon’s preferred plan.” According to Boggs, Amazon wanted to extend its contract with the USPS, which is set to expire on October 1, 2026, but the USPS planned to “auction last-mile delivery contracts” instead.
In a statement given to The VergeAmazon spokesman Steve Kelly said, “We continue to discuss ways to enhance our partnership that will increase our spend with them, and we look forward to hearing more from them soon – with the goal of building on our relationship that began more than 30 years ago.”
Amazon’s plan to cut ties with the USPS is not yet final — it will reportedly only move forward with expanding its own delivery network if it can’t come to an agreement to extend its USPS contract. Amazon calls the USPS its “first and oldest business partner” and plans to contribute $6 billion to USPS revenue in 2025, about 7.5 percent of the Postal Service’s total revenue.
If it overtakes the USPS, Amazon’s own in-house delivery network would rival the Postal Service. According to Pitney Bowes, Amazon will handle 6.3 billion parcels in 2024, second only to the USPS with 6.9 billion, and could overtake the USPS by 2028, shipping an estimated 8.4 billion packages compared to the USPS’s 8.3 billion.
Amazon spokesperson Steve Kelly:
“USPS is a long-term and trusted partner and we are committed to working together. We have continued to discuss ways to enhance our partnership that will increase our spending with them, and we look forward to hearing more from them soon – with the goal of expanding our relationship that began more than 30 years ago. We were surprised to hear that they want to run an auction after nearly a year of negotiations, so we still have a lot of work to do. We are looking forward to the change in direction and the uncertainty in our delivery network. Given that, we are evaluating all of our options that will ensure we can continue to deliver for our customers.”
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