Amazon's US Postal Service Deal Hangs in the Balance as Talks Stagnate. The e-commerce giant is on the verge of abandoning its decades-long partnership with the USPS over a contract dispute, raising concerns about mail delivery and Amazon's expansion plans.
Negotiations between Amazon and the USPS Postmaster General David Steiner have reportedly stalled, prompting Amazon to consider cutting ties altogether. According to an anonymous source cited by The Washington Post, Amazon wants to extend its contract, but the USPS is planning to auction off last-mile delivery contracts instead.
Amazon has been a long-time partner of the USPS, contributing $6 billion in revenue to the postal service in 2025 and making up about 7.5 percent of its total revenue. However, with Amazon's own delivery network expanding rapidly, the company may not need to rely on the USPS as much.
If Amazon leaves the USPS behind, its own in-house delivery network could rival that of the Postal Service. In 2024, Amazon handled 6.3 billion parcels, second only to the USPS with 6.9 billion, and could overtake the USPS by 2028, shipping an estimated 8.4 billion packages.
The development has raised concerns about mail delivery and its potential disruption to small businesses and individuals relying on the USPS for services like package tracking and online shopping.
Amazon spokesperson Steve Kelly said in a statement that the company remains committed to working with the USPS but is evaluating all options to ensure it can continue to deliver for customers. The fate of the deal hangs in the balance, but Amazon's expansion plans and its own delivery network growth suggest that the e-commerce giant may not be willing to give up on its ambitions anytime soon.
Negotiations between Amazon and the USPS Postmaster General David Steiner have reportedly stalled, prompting Amazon to consider cutting ties altogether. According to an anonymous source cited by The Washington Post, Amazon wants to extend its contract, but the USPS is planning to auction off last-mile delivery contracts instead.
Amazon has been a long-time partner of the USPS, contributing $6 billion in revenue to the postal service in 2025 and making up about 7.5 percent of its total revenue. However, with Amazon's own delivery network expanding rapidly, the company may not need to rely on the USPS as much.
If Amazon leaves the USPS behind, its own in-house delivery network could rival that of the Postal Service. In 2024, Amazon handled 6.3 billion parcels, second only to the USPS with 6.9 billion, and could overtake the USPS by 2028, shipping an estimated 8.4 billion packages.
The development has raised concerns about mail delivery and its potential disruption to small businesses and individuals relying on the USPS for services like package tracking and online shopping.
Amazon spokesperson Steve Kelly said in a statement that the company remains committed to working with the USPS but is evaluating all options to ensure it can continue to deliver for customers. The fate of the deal hangs in the balance, but Amazon's expansion plans and its own delivery network growth suggest that the e-commerce giant may not be willing to give up on its ambitions anytime soon.