Amazon is reportedly preparing to end its long-running partnership with the United States Postal Service, a move that could upend both the shipping industry and the financial future of the USPS. Citing sources familiar with the matter, the Washington Post reports that Amazon is developing plans to pull the billions of packages it sends through the USPS by the end of next year, at which point their current contract will end.
The pause comes after failed negotiations with the USPS over a new deal, despite Amazon reps insisting that the USPS remains a "trusted partner" and that the company is still considering its options. The plans "are not final and could change," sources tell the Post. The potential breakup comes as the USPS, which has posted multibillion-dollar losses in nine of the last 10 years—with a $9.5 billion loss just last year, per Reuters—seeks to democratize its lucrative shipping agreements, opening access to more retailers and regional carriers via a planned reverse auction in 2026.
Amazon, which had sought a four-year contract extension, was reportedly caught off guard by the new approach, which would require it to compete for access alongside other major shippers. Industry experts tell the Post that losing Amazon's volume could be catastrophic for the USPS, which has become increasingly reliant on package revenue as traditional mail declines. Some lawmakers are already weighing potential rescue options for the agency, which received $107 billion in federal assistance as recently as 2022.
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