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Amazon Weighs Ending USPS Delivery Deal as Talks Stall and Contract Deadline Nears

USPS plans to auction last‑mile contracts ahead of the current agreement’s October 1, 2026 expiration.

Overview

  • The Washington Post reports that Amazon is preparing to expand its own network and could withdraw parcels from USPS by late 2026 if no renewal is reached.
  • Amazon spokesperson Steve Kelly called USPS a longstanding, trusted partner and said the company is evaluating options after being surprised by the auction plan.
  • Amazon generated more than $6 billion for USPS in 2025, roughly 7–8% of the agency’s revenue, a sum that would be difficult for the financially strained Postal Service to replace.
  • Amazon delivered 6.3 billion parcels in 2024 versus USPS’s 6.9 billion, and Pitney Bowes forecasts Amazon could surpass USPS volumes by 2028.
  • USPS intends to auction last‑mile work early next year, while industry shifts continue with UPS planning to cut the Amazon volume it handles by more than half by 2026.