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.
Recommended by Our Editors
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.
Nothing is final as of yet, and Amazon still remains “committed to working together” with a partner it has had for over 30 years. “We’ve continued to discuss ways to extend our partnership that would increase our spend with them, and we look forward to hearing more from them soon,” Kelly said.
Get Our Best Stories!
Your Daily Dose of Our Top Tech News
Sign up for our What’s New Now newsletter to receive the latest news, best new products, and expert advice from the editors of PCMag.
Sign up for our What’s New Now newsletter to receive the latest news, best new products, and expert advice from the editors of PCMag.
By clicking Sign Me Up, you confirm you are 16+ and agree to our Terms of Use and Privacy
Policy.
Thanks for signing up!
Your subscription has been confirmed. Keep an eye on your inbox!
About Our Expert
Experience
Jibin is a tech news writer based out of Ahmedabad, India. Previously, he served as the editor of iGeeksBlog and is a self-proclaimed tech enthusiast who loves breaking down complex information for a broader audience.
Read Full Bio
