Amazon is considering ending its long-standing contract with the United States Postal Service and creating its own competing nationwide delivery network, according to The Washington Post.
The current agreement between the e-commerce giant and the USPS expires in October 2026. The two sides have spent months negotiating what the next version of the contract will look like, but those negotiations have been complicated by President Trump’s push to privatize the USPS, the Post reports.
Under the current deal, Amazon pays the USPS billions of dollars a year to deliver packages, accounting for about 7.5% of the agency’s revenue in 2025.
“The USPS has been a long-standing and trusted partner, and we remain committed to the partnership,” Amazon spokesman Steve Kelly said, adding that the company is discussing “ways to expand our partnership.”
But Kelly said Amazon was “surprised to hear” that the USPS wants to “hold an auction” for some of its shipping capacity.
“[S]o we still have a lot to work on. Given the change in direction and the uncertainty it adds to our delivery network, we are evaluating all of our options that will ensure we can continue to serve our customers,” he said.
Amazon already operates a large transportation network that includes airplanes, electric Rivian trucks and a nascent drone delivery service — though its drone program has faced several challenges this year, including most recently, a Federal Aviation Administration investigation. It is also developing autonomous vehicles through its Zoox subsidiary.
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This story has been updated with a statement from Amazon.
