Amazon could ditch USPS and create its own shipping network in massive industry shakeup: report
Amazon may be exploring new ways to deliver packages
- Amazon is reportedly considering ending its shipping contract with the U.S. Postal Service (USPS) and developing its own delivery network.
- This decision could cost USPS an estimated $6 billion in 2025, accounting for 7.5 percent of its annual revenue, as formal negotiations for a new deal have concluded without an agreement.
- An Amazon spokesman stated the company remains “committed” to its partnership with USPS, describing them as a “longstanding and trusted partner,” despite evaluating other options.
- USPS plans to auction off last-mile deliveries early next year, including packages from Amazon, a move that surprised the retailer.
- The potential loss of Amazon's business would be a significant blow to the financially struggling USPS, which has faced criticism from figures such as Donald Trump regarding its financial performance.