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Amazon is reportedly evaluating ending its partnership with USPS to establish an independent delivery network. The current contract between the companies expires in October 2026, but negotiations have stalled due to political pressures. Amazon pays USPS billions annually, contributing significantly to the agency’s revenue. The company maintains its commitment to collaboration while expressing concerns about USPS’s auction plans. Uncertainty surrounding USPS’s future has prompted Amazon to explore alternative logistics strategies.
Key facts
- Amazon is considering terminating its long-term USPS contract to develop a competing delivery system.
- The existing agreement between Amazon and USPS is set to expire in October 2026.
- Negotiations have been hindered by political efforts to privatize the USPS under President Trump’s administration.
- Amazon’s annual payments to USPS account for approximately 7.5% of the agency’s 2025 revenue.
- Amazon’s spokesperson emphasized the need to secure reliable delivery options amid regulatory uncertainty.
