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Amazon Eyes USPS Breakup After 30 Years
4 Dec
Summary
- Amazon may end its 30-year partnership with USPS.
- USPS plans to auction last-mile delivery contracts.
- Amazon handled 6.3 billion parcels in 2024, second to USPS.
Amazon is reportedly contemplating a significant shift in its logistics strategy, potentially ending its over 30-year-long partnership with the United States Postal Service. Anonymous sources suggest that recent negotiations between Amazon and USPS officials have stalled, pushing the e-commerce giant to explore alternatives to its current delivery arrangement.
This potential separation arises from differing views on future contract terms. Amazon had hoped to extend its existing agreement, which is set to expire in October 2026. However, the USPS is reportedly planning to use an auction system for its last-mile delivery contracts, a direction Amazon finds unsatisfactory.
Should Amazon proceed with expanding its internal delivery network, it would significantly bolster its capacity, already handling 6.3 billion parcels in 2024, second only to the USPS. This move could see Amazon overtaking the Postal Service in package volume by 2028, underscoring the potential impact of this evolving relationship.
