Why is the USPS offering last-mile services to new customers?

The USPS is seeking to increase revenue and mitigate billions in ongoing financial losses by opening its last-mile delivery network to additional clients.

How much revenue does the Amazon contract generate for the USPS?

The contract with Amazon reportedly brings in approximately $6 billion annually to the US Postal Service.

What is 'universal service' for the USPS?

Universal service is the USPS's legal obligation to deliver mail nationwide at a single price, including to remote and expensive-to-reach locations.

Home / Business and Economy / USPS Risks Amazon Split Over New Delivery Plans

USPS Risks Amazon Split Over New Delivery Plans

24 Dec, 2025

•

Summary

USPS faces potential cash shortage within 12-24 months.
Amazon contract reportedly generates $6 billion annually for USPS.
USPS plans to auction last-mile services, risking Amazon's partnership.

USPS Risks Amazon Split Over New Delivery Plans

The US Postal Service is considering opening its lucrative last-mile delivery services to new clients in an attempt to offset billions in ongoing financial losses. This strategic shift, aimed at securing additional revenue streams, carries a significant risk of alienating its most valuable customer, Amazon.

The agency has reported substantial deficits, with $9 billion lost in the twelve months prior to September. USPS officials have expressed concern over their financial stability, indicating a potential cash shortage within the next 12 to 24 months without intervention. While cost-cutting measures are in place, they are deemed insufficient to resolve the deep-seated financial challenges.