Amazon May End USPS Partnership Amid Stalled Negotiations

After more than three decades of collaboration, Amazon is contemplating severing its relationship with the United States Postal Service. This move comes as the e-commerce giant seeks to grow its own distribution framework, following reports that talks with USPS have hit a standstill.

According to The Washington Post, which is owned by Amazon founder Jeff Bezos, unnamed insiders have described how stalled discussions with USPS Postmaster General David Steiner, appointed by Trump, are leading Amazon to possibly terminate their agreement.

Jacob Bogage, a journalist for the Washington Post, shared via Bluesky that Amazon's initial intent was not to discontinue this collaboration. Bogage highlighted that Amazon aimed to prolong their contract, which is due to expire on October 1, 2026, but the USPS intended instead to auction off delivery contracts for the last mile.

In remarks given to The Verge, Steve Kelly, an Amazon representative, emphasized ongoing discussions about extending their alliance, hoping to amplify their financial commitment with USPS. "We're waiting to hear more in hopes of maintaining a partnership that began over 30 years ago," said Kelly.

The cut of ties with USPS is not yet definitive. Amazon reportedly plans to expand its proprietary delivery capabilities only if no further agreement with USPS is reached. The company views its relationship with USPS as long-standing, contributing $6 billion in 2025 – a significant 7.5% of USPS's entire income.

Should Amazon decide to eliminate its USPS link, its own delivery systems would vie closely with Postal Service operations. In 2024, Amazon managed 6.3 billion parcels, trailing only USPS, which handled 6.9 billion. Data from Pitney Bowes suggests Amazon might surpass USPS by 2028, sending out 8.4 billion parcels versus 8.3 billion from USPS.

Kelly remarked that while USPS is a valued and reliable partner, the decision to pursue an auction after a year of talks was unforeseen. Amazon is therefore reassessing its choices to guarantee ongoing customer service, considering the newfound uncertainties and shifts in direction added to their operations.

Though negotiations continue, Amazon's course will depend on achieving an agreement that ensures mutual growth and stability. The company consistently strives to bolster its logistics capabilities, ensuring it meets the demands and expectations of its extensive customer base.