Amazon is reportedly ready to drop its USPS deal if negotiations fall through

After implicit 30 years, Amazon whitethorn beryllium cutting ties with the United States Postal Service arsenic it looks to grow its ain transportation network, arsenic reported by The Washington Post. The outlet, owned by Amazon laminitis Jeff Bezos, cites anonymous sources who said negotiations betwixt Amazon and Trump-appointed USPS Postmaster General David Steiner person reportedly stagnated, pushing Amazon to see concluding the concern altogether. 

Washington Post newsman Jacob Bogage noted successful a station connected Bluesky that “this was not Amazon’s preferred plan.” According to Bogage, Amazon wanted to widen its declaration with the USPS, which is acceptable to expire connected October 1st, 2026, but the USPS planned to “auction disconnected last-mile transportation contracts” instead. 

In a connection provided to The Verge, Amazon spokesperson Steve Kelly said, “We’ve continued to sermon ways to widen our concern that would summation our walk with them, and we look guardant to proceeding much from them soon – with the extremity of extending our narration that started much than 30 years ago.”

Amazon’s program to chopped ties with the USPS isn’t last yet — it would reportedly lone determination guardant with expanding its ain transportation web if it can’t travel to an statement to widen its USPS contract. Amazon has called the USPS its “first and oldest concern partner,” and contributed $6 cardinal successful gross to the USPS successful 2025, making up astir 7.5 percent of the Postal Service’s full revenue. 

If it near USPS behind, Amazon’s ain in-house transportation web would rival that of the Postal Service. According to Pitney Bowes, Amazon handled 6.3 cardinal parcels successful 2024, 2nd lone to the USPS with 6.9 billion, and could overtake the USPS by 2028, shipping an estimated 8.4 cardinal packages compared to the USPS’s 8.3 billion.

Amazon spokesperson Steve Kelly:

“The USPS is simply a longstanding and trusted spouse and we stay committed to moving together. We’ve continued to sermon ways to widen our concern that would summation our walk with them, and we look guardant to proceeding much from them soon – with the extremity of extending our narration that started much than 30 years ago. We were amazed to perceive they privation to tally an auction aft astir a twelvemonth of negotiations, truthful we inactive person a batch to enactment through. Given the alteration of absorption and the uncertainty it adds to our transportation network, we’re evaluating each of our options that would guarantee we tin proceed to present for our customers.”