Amazon is weighing whether to end its long-standing delivery contract with the U.S. Postal Service as negotiations over a new agreement, set to replace the one expiring in 2026, have stalled amid USPS plans to auction shipping capacity and political pressure to privatize the agency. Amazon, which provides billions in revenue to USPS, says the new direction creates uncertainty and is prompting it to consider all options—including further expanding its own nationwide delivery network of planes, vans, drones, and autonomous vehicles, according to TechCrunch. They write:
Amazon is considering ending its long-standing contract with the United States Postal Service and building out its own competing nationwide delivery network, according to The Washington Post.
The current agreement between the e-commerce giant and the USPS expires in October 2026. The two sides have spent months negotiating what the next version of the contract would look like, but those negotiations have been complicated by President Trump’s push to privatize the USPS, the Post reports.
Under the current agreement, Amazon pays the USPS billions of dollars annually to distribute packages, accounting for roughly 7.5% of the agency’s revenue in 2025. […]
But Kelly said Amazon was “surprised to hear” the USPS wants to “run an auction” for some of its shipping capacity. […]
Amazon already operates a large transportation network that includes airplanes, Rivian electric vans, and a budding drone delivery service — though the drone program has faced a number of struggles this year, including most recently, a Federal Aviation Administration probe. It’s also developing autonomous vehicles through its subsidiary Zoox.
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