Overview
- Reporting indicates Amazon is preparing to scale its own delivery network and could pull packages from USPS by the end of 2026 if no new agreement is reached.
- The current Amazon–USPS contract runs through October 1, 2026, with talks over a renewal described as largely concluded without a deal.
- USPS plans a reverse auction in early 2026 to sell access to facilities and last‑mile capacity, a shift Amazon says it did not expect.
- Amazon generated roughly $6 billion for USPS in 2025, about 7–7.5% of the agency’s revenue, raising concerns for a service that has posted multi‑billion‑dollar annual losses.
- Amazon says the Postal Service remains a longstanding partner and that no decision is final, while its logistics footprint—6.3 billion parcels in 2024 and a multi‑billion‑dollar rural expansion—positions it to carry more of its own volume.