Amazon Weighs Ending USPS Partnership by 2026

Amazon is exploring options to end its longstanding partnership with the United States Postal Service, potentially shifting billions of packages to its own expanding delivery network by the end of 2026, when the current contract expires.

The e-commerce giant, which relies on the Postal Service for last-mile delivery of a significant portion of its shipments, has been in stalled negotiations with the agency. Sources familiar with the discussions indicate that Amazon could withdraw its business as it builds out its logistics infrastructure. The move comes amid the Postal Service's plans to introduce a reverse auction in early 2026, aimed at fostering competition among shippers for access to its facilities. This approach would require Amazon to bid against national retailers and regional carriers, rather than securing preferential rates directly.

Amazon generates more than $6 billion in annual revenue for the Postal Service, accounting for approximately 7.5 percent of the agency's total last year. The partnership, which dates back over 30 years, has allowed Amazon to leverage the Postal Service's extensive rural reach for cost-effective deliveries, particularly through the Parcel...