Amazon, the world's largest e-commerce platform, is reportedly weighing its options to sever ties with the US Postal Service (USPS), a move that would allow it to build its own shipping network and challenge the USPS's dominance in the market. According to The Washington Post, Amazon's annual expenditure on the public carrier has reached over $6 billion, accounting for approximately 8% of the USPS's total revenues – a significant increase from around $4 billion in 2019.
The shift towards building its own shipping network is no surprise, given Amazon's extensive investments in logistics and delivery infrastructure. In recent years, the company has acquired Boeing planes, introduced electric delivery vans, and developed a drone delivery network to enhance its ability to rapidly deliver packages across the country. Last year alone, Amazon handled over 6.3 billion parcels, representing a 7% increase from the previous year.
In stark contrast, the USPS experienced a modest growth of just 3%, handling around 6.9 billion parcels. This disparity in volume underscores Amazon's significant head start in building its shipping network and raises questions about the long-term viability of the USPS. The service has been struggling with financial woes, losing billions of dollars annually, which only exacerbates the pressure to find new revenue streams.
Sources close to the negotiations between Amazon and the USPS indicate that talks have stalled, leaving the company on high alert to reevaluate its reliance on the public carrier. With private companies like Walmart and others investing heavily in fast and reliable delivery services, the USPS's ability to adapt to these changes has been called into question. As a result, there is growing concern that Amazon may choose to abandon ship with the USPS altogether, sparking concerns about the potential impact on this vital public service.
The shift towards building its own shipping network is no surprise, given Amazon's extensive investments in logistics and delivery infrastructure. In recent years, the company has acquired Boeing planes, introduced electric delivery vans, and developed a drone delivery network to enhance its ability to rapidly deliver packages across the country. Last year alone, Amazon handled over 6.3 billion parcels, representing a 7% increase from the previous year.
In stark contrast, the USPS experienced a modest growth of just 3%, handling around 6.9 billion parcels. This disparity in volume underscores Amazon's significant head start in building its shipping network and raises questions about the long-term viability of the USPS. The service has been struggling with financial woes, losing billions of dollars annually, which only exacerbates the pressure to find new revenue streams.
Sources close to the negotiations between Amazon and the USPS indicate that talks have stalled, leaving the company on high alert to reevaluate its reliance on the public carrier. With private companies like Walmart and others investing heavily in fast and reliable delivery services, the USPS's ability to adapt to these changes has been called into question. As a result, there is growing concern that Amazon may choose to abandon ship with the USPS altogether, sparking concerns about the potential impact on this vital public service.
. Like, I get it, Amazon's got a huge shipping game going on and they wanna be in control, but what's wrong with using the USPS anyway? It's not like they're breaking any laws by using a public carrier... just saying 
. I mean, can you imagine if Walmart said they were done with UPS too 
? The whole delivery system would come crashing down 
. But I guess when you've got that kind of clout, you can pretty much do whatever you want 
. It's gonna be interesting to see how this all plays out 
...
. i think the usps has been struggling to keep up for a while now 
. what's concerning me is that if amazon does cut ties with the usps, who's gonna be left holding the bag for all those packages? 
it's gonna be interesting to see how this plays out
It's all about the bottom line, right? And let's be real, the USPS needs to find a way to make up for those lost billions... or else they'll just become obsolete 
.
i'm not surprised amazon is thinking of ditching the usps! they've been investing so much in their own logistics and delivery infrastructure it's only natural they'd want to take control of their shipping network 
.
i mean think about it if amazon goes private, whats gonna happen to all those parcels they need to ship? theres gotta be some kinda compromise or somethin 
maybe the usps can learn from amazons logistics skills & make their own delivery network 
. Like, have you seen those drones? That tech is straight out of sci-fi movies! 
And their vans are so efficient, it's no wonder they're handling more parcels than the USPS. 
i mean we know walmart's trying to step up their game but they're no usps, right? 
it's a big move and amazon should really think about how it'll affect the ppl who rely on the usps for more than just shipping