Overview
- Multiple outlets report Amazon plans to cut USPS-bound parcels by at least two-thirds when the current deal expires on September 30, 2026.
- Amazon says USPS “walked away” from negotiations in December, notes it submitted a February bid under the new process, and adds it hopes to continue at a reduced level but has received no response.
- Postmaster General David Steiner told Congress the agency could run out of cash within about 12 months after posting a $9 billion net loss in 2025 and hitting its $15 billion borrowing cap.
- USPS shifted large-shipper arrangements to a competitive auction, with winners expected in Q2 and binding contracts in Q3, leaving limited runway before the fall cutoff.
- The pullback threatens a major revenue stream—Amazon accounted for roughly 15% of USPS package volume—while Amazon invests over $4 billion to expand rural delivery and scales its Rivian electric van fleet.