Amazon Considers Ending USPS Partnership

Amazon is reportedly weighing the end of its decades-long partnership with the United States Postal Service (USPS) if contract negotiations fail. Sources familiar with the talks told The Washington Post that discussions between Amazon and USPS Postmaster General David Steiner have stalled. While Amazon wanted to extend the deal set to expire in October 2026, the USPS is exploring auctioning off last-mile delivery contracts instead.

Decades-Long Partnership at Stake

For over 30 years, Amazon has relied on the USPS as a key delivery partner. The tech giant contributed roughly $6 billion to the Postal Service in 2025, accounting for nearly 7.5% of its total revenue. Despite this significant contribution, the potential split underscores Amazon’s growing focus on controlling its own logistics network.

Amazon Explores Delivery Network Expansion

Industry insiders say Amazon would only sever ties if an agreement cannot be reached. Expanding its own delivery capabilities aligns with the company’s broader strategy to reduce reliance on third-party carriers. Over the past few years, Amazon has invested heavily in delivery infrastructure, including fulfillment centers, trucks, and last-mile technologies like drones.

USPS Contract Negotiations Stall

Washington Post reporter Jacob Bogage highlighted that this potential split “was not Amazon’s preferred plan.” Amazon reportedly hoped for a contract extension, but the USPS’s interest in auctioning off delivery routes has slowed progress. The negotiations reveal the complex balance between Amazon’s scale and the Postal Service’s need for competitive revenue strategies.

Amazon Statement on Partnership Talks

In a statement to The Verge, Amazon spokesperson Steve Kelly emphasized the company’s intent to maintain the historic partnership. “We’ve continued to discuss ways to extend our partnership that would increase our spend with them,” Kelly said. “We look forward to hearing more from them soon, with the goal of extending our relationship that started more than 30 years ago.”

Implications for Consumers

A split between Amazon and the USPS could affect delivery speed, service areas, and even pricing for customers. While Amazon continues to innovate with faster deliveries—including trials of 30-minute drops—USPS has historically provided reliable service to rural and suburban areas that Amazon’s fleet does not always cover.

Industry Analysts Weigh In

Experts suggest Amazon’s move could reshape the U.S. delivery landscape. By taking more control over its logistics, Amazon could reduce costs and streamline operations. However, breaking from the USPS risks backlash from customers who value consistent delivery across all regions.

What’s Next for Amazon and USPS

While nothing is finalized, sources indicate Amazon is preparing contingency plans to fully expand its delivery network if talks fail. Both companies face high stakes: Amazon needs efficient last-mile delivery to maintain Prime customer satisfaction, while USPS must secure revenue streams to remain competitive. The coming months will determine whether this historic partnership endures or becomes a landmark shift in U.S. logistics.