Amazon is reportedly ready to drop its USPS deal if negotiations fall through

After more than 30 years, Amazon may sever ties with the United States Postal Service as it seeks to expand its own delivery network, as reported The Washington Post. The outlet, owned by Amazon founder Jeff Bezos, cites anonymous sources who said negotiations between Amazon and Trump-appointed USPS Postmaster General David Steiner have reportedly stalled, leading Amazon to consider closing the partnership altogether.

Washington Post Journalist Jacob Bogage noted in an article on Bluesky that “this was not Amazon’s preferred plan.” According to Bogage, Amazon wanted to extend its contract with the USPS, which expires on October 1, 2026, but the USPS planned to “auction last-mile delivery contracts” instead.

In a statement provided to The edgeAmazon spokesperson Steve Kelly said: “We have continued to discuss ways to expand our partnership that would increase our spending with them, and we look forward to hearing more soon – with the goal of expanding our relationship that began more than 30 years ago.” »

Amazon’s plan to sever its ties with the USPS is not yet final: the company would only move forward with expanding its own delivery network if it fails to reach an agreement to extend its contract with the USPS. Amazon called the USPS its “first and oldest business partner” and contributed $6 billion in revenue to the USPS in 2025, or about 7.5% of the Postal Service’s total revenue.

If it left USPS behind, Amazon’s internal delivery network would rival that of the Postal Service. According to Pitney Bowes, Amazon processed 6.3 billion packages in 2024, second only to USPS with 6.9 billion, and could surpass USPS by 2028, shipping about 8.4 billion packages, compared to USPS’s 8.3 billion.

Amazon spokesperson Steve Kelly:

“The USPS has been a long-time trusted partner and we remain committed to working together. We have continued to discuss ways to expand our partnership that would increase our spending with them, and we look forward to hearing more soon – with the goal of expanding our relationship that began more than 30 years ago. We were surprised to learn that they are interested in holding an auction after nearly a year of negotiations, so we still have a long way to go. Given the change in leadership and the uncertainty it adds to our delivery network, we are evaluating all our options this would ensure we can continue to meet our customers’ expectations.