Amazon is reportedly willing to walk away from its USPS deal if negotiations fail

After more than 30 years, Amazon may be cutting ties with the US Postal Service, as it looks to expand its delivery network, according to the British Daily Mail. The Washington Post. The outlet, owned by Amazon founder Jeff Bezos, cites anonymous sources who said negotiations between Amazon and Trump-appointed USPS Postmaster David Steiner have stalled, prompting Amazon to consider concluding the partnership altogether.

The Washington Post Reporter Jacob Bugaj noted in Share on Bluesky That “this was not Amazon’s preferred plan.” According to Bogage, Amazon wanted to extend its contract with USPS, which is set to expire on October 1, 2026, but USPS planned to “auction off last-mile delivery contracts” instead.

In a statement submitted to Edge“We have continued to discuss ways to expand our partnership that will increase our spending with them, and we look forward to hearing more from them soon – with the goal of expanding our relationship that began more than 30 years ago,” Amazon spokesman Steve Kelly said.

Amazon’s plan to cut ties with USPS is not final yet — it will reportedly move forward with expanding its delivery network only if it can’t reach an agreement to extend its USPS contract. Amazon called the USPS “USPS”. “First and oldest business partner” It contributed $6 billion in revenue to the USPS in 2025, making up about 7.5 percent of the Postal Service’s total revenue.

If USPS was left behind, Amazon’s internal delivery network would rival that of the Postal Service. according to Pitney BowesAmazon handled 6.3 billion packages in 2024, second only to USPS with 6.9 billion, and could overtake USPS by 2028, shipping an estimated 8.4 billion packages compared to USPS’ 8.3 billion.

Amazon spokesman Steve Kelly:

“USPS is a long-standing and trusted partner and we remain committed to working together. We have continued to discuss ways to expand our partnership that will increase our spending with them, and we look forward to hearing more from them soon – with the goal of expanding our relationship that began more than 30 years ago. We were surprised to hear that they wanted to conduct an auction after nearly a year of negotiations, so we still have a lot to work through. Given the changing trend and the uncertainty it adds to our delivery network, we are evaluating all of our options that will ensure we can continue In providing services to our customers.