Add thelocalreport.in As A Trusted Source
Amazon is considering the possibility of ending its relationship with the US Postal System and plans to create its own shipping network. A move that could spell disaster for the beleaguered federal agency, According to a new report.
The retail giant is one of the The Postal Service’s most lucrative shipping contracts And it reportedly provided $6 billion in 2025, amounting to 7.5 percent of the agency’s total annual revenue.
Amazon is “negotiating service agreements” with the USPS to discuss terms of renewing the previous four-year deal, which is set to expire in October 2026.
Formal negotiations have now ended and no new deal has been struck, and the retailer now wants to self-deliver billions of packages previously handled by the Postal Service. Washington Post, Who It is also owned by Amazon founder Jeff Bezos.,
However, a company spokesperson said Independent USPS was a “long-term and trusted partner” and plans had not been finalized. The spokesperson said Amazon is “committed” to working with the service.
“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,” the spokesperson said.
The USPS plans to hold an auction early next year, where the service plans to auction off so-called last-mile deliveries, which would include packages from Amazon.
“We were surprised to hear that they want to run an auction after almost a year of negotiations, so we still have a lot of work to do. Given the change in direction and the uncertainty in our delivery network, we are evaluating all of our options that will ensure we can continue to deliver for our customers.”
Independent USPS has been contacted for comment on the alleged breakdown of negotiations.
Losing Amazon as a customer would be another major blow to the Postal Service that has reported multibillion-dollar losses in nine of the last 10 years despite raising prices. The only year in which no losses were reported was 2022, when Congress approved a $107 billion care package in an effort to save the agency.
Such partnerships with major shippers are the central thrust of the Postal Service’s “cooperation” business model. Retailers, the agency’s major competitors, send some parcels independently through the USPS and others,
This relationship allows the USPS to make profitable deliveries, while private sector companies can avoid shipments that would cost more to deliver independently.
Donald Trump and the Republican Party have often criticized the relationship between the two services, having previously argued that taxpayers should not “subsidize” an agency with such significant financial deficits, and Trump has publicly expressed regret that the Postal Service is not a “profitable” service.
In December, before being sworn in for a second time, the President said that privatizing the USPS was “not the worst idea” he had ever heard.
During his first term, Trump referred to the Postal Service as “a joke” and Amazon as “delivery boys” and also threatened to block emergency financial aid unless the Mail Service quadrupled its package prices during the Covid-19 pandemic.