Amazon and the U.S. Postal Service have reached a new agreement that keeps the majority of Amazon’s deliveries within USPS operations while scaling back a smaller portion of the workload. Under the deal, the U.S. Postal Service will continue handling about 80 percent of packages for Amazon, with its role reduced by roughly 20 percent.
The agreement follows months of negotiations that carried serious financial implications. Amazon had previously considered cutting its reliance on USPS by as much as two-thirds, which would have sharply reduced one of the agency’s largest revenue streams. The final terms reflect a compromise that keeps most of the partnership intact.
The timing is critical for USPS as it faces ongoing financial pressure tied to declining traditional mail and operational constraints. Postmaster General David Steiner recently warned the agency could run out of cash within a year without meaningful changes, placing added importance on maintaining high-volume delivery contracts.
“We’re pleased to have reached a new agreement with USPS [U.S. Postal Service] that furthers our longstanding partnership and will let us continue supporting our customers and communities together,” Terrence Clark, an Amazon spokesperson, wrote in a statement to The Hill Tuesday.
USPS has not publicly responded to the agreement.
Amazon remains the Postal Service’s largest customer, moving about 1.7 billion packages through the network each year. That volume represents roughly 15 percent of USPS deliveries and generates an estimated $6 billion annually. The previous contract was set to expire in September, and the new agreement still requires approval from the Postal Regulatory Commission.
Earlier efforts by USPS to seek competing bids for its last-mile delivery network fell short of expectations, leading the agency to continue direct negotiations with Amazon and secure the current deal.
