Amazon is considering ending its long-term delivery contract with the United States Postal Service and building its own nationwide shipping network, according to a report by The Washington Post, as negotiations over a new agreement grow more uncertain.
Contract talks affected by privatization push
Amazon’s current contract with the USPS expires in October 2026. The two sides have been in negotiations for months over a follow-on agreement, but those talks have been complicated by President Trump’s push to privatize the postal service, The Washington Post reported.
Under the existing agreement, Amazon pays the USPS billions of dollars each year for package distribution. Those payments account for about 7.5% of USPS revenue in 2025.
Amazon responds to uncertainty in talks
Amazon spokesperson Steve Kelly said the USPS remains a trusted partner and that Amazon is still discussing ways to extend the partnership.
“The USPS is a longstanding and trusted partner and we remain committed to working together,” Kelly said in a statement.
However, Kelly said Amazon was “surprised to hear” that the USPS wants to “run an auction” for some of its shipping capacity. He added that the shift introduces new uncertainty into Amazon’s delivery planning.
“[S]o we still have a lot to work through. Given the change of direction and the uncertainty it adds to our delivery network, we’re evaluating all of our options that would ensure we can continue to deliver for our customers,” he said.
Amazon’s existing logistics and delivery infrastructure
Amazon already operates a large transportation and delivery network independent of the USPS. That infrastructure includes its own cargo aircraft fleet, a nationwide network of delivery partners using Rivian electric vans, and a developing drone delivery program.
The drone program has faced setbacks this year, including a recent Federal Aviation Administration investigation. Amazon is also developing autonomous vehicle technology through its subsidiary Zoox.
Featured image credits: Tareq Ismail via Unsplash
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