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Friday, Dec 05, 2025
Outside the box.
Amazon Prepares to Expand Its Delivery Network as Talks with U.S. Postal Service Stall
E-commerce giant may withdraw from USPS by end of 2026 while boosting its in-house logistics and rural delivery footprint
Amazon is considering ending its long-standing reliance on the United States Postal Service (USPS) and expanding its own delivery infrastructure, according to sources familiar with the matter.
The move comes after months of unsuccessful negotiations to renew their contract under a new “negotiated service agreement.”
Under the current arrangement, Amazon remains a top customer for USPS, delivering billions of packages each year.
But with USPS seeking to shift to a reverse auction model for its last-mile delivery contracts beginning in 2026, Amazon says the new terms do not guarantee the volume or stability it needs.
The company is evaluating whether to reroute its volume entirely through its own logistics network by the end of 2026 if no agreement is reached.
To support such a shift, Amazon has already committed more than four billion dollars to expand its rural delivery network.
That expansion is set to triple the company’s delivery-station footprint in underpopulated and remote regions, adding over 200 new stations and creating tens of thousands of jobs across small towns.
The additional capacity would allow Amazon to deliver directly to doorsteps without relying on third-party carriers.
In recent years Amazon has rapidly grown its parcel volume.
In 2024 it delivered roughly 6.3 billion packages — just behind USPS’s 6.9 billion.
Industry forecasts suggest Amazon could surpass USPS in parcel volume within a few years if current trends continue, a dramatic shift in the U.S. parcel-delivery landscape.
For USPS — which recorded a nine-billion-dollar loss last year — losing Amazon’s business would represent a major financial blow.
The agency has been modernising its operations, investing in electric vehicles and upgrading its fleet, but analysts warn that the loss of its largest customer could seriously undermine long-term viability.
Amazon spokespersons have declined to confirm any final decision, describing the situation as “contingent on continued dialogue.” The company emphasises its commitment to maintaining delivery reliability for customers, even as it prepares to significantly scale up its private infrastructure.
Should Amazon execute the withdrawal, the U.S. shipping market may undergo a profound transformation, with Amazon emerging as the dominant delivery force — reshaping competition and potentially sidelining long-established carriers.
That would mark a landmark moment in the evolution of America’s logistics ecosystem.
The move comes after months of unsuccessful negotiations to renew their contract under a new “negotiated service agreement.”
Under the current arrangement, Amazon remains a top customer for USPS, delivering billions of packages each year.
But with USPS seeking to shift to a reverse auction model for its last-mile delivery contracts beginning in 2026, Amazon says the new terms do not guarantee the volume or stability it needs.
The company is evaluating whether to reroute its volume entirely through its own logistics network by the end of 2026 if no agreement is reached.
To support such a shift, Amazon has already committed more than four billion dollars to expand its rural delivery network.
That expansion is set to triple the company’s delivery-station footprint in underpopulated and remote regions, adding over 200 new stations and creating tens of thousands of jobs across small towns.
The additional capacity would allow Amazon to deliver directly to doorsteps without relying on third-party carriers.
In recent years Amazon has rapidly grown its parcel volume.
In 2024 it delivered roughly 6.3 billion packages — just behind USPS’s 6.9 billion.
Industry forecasts suggest Amazon could surpass USPS in parcel volume within a few years if current trends continue, a dramatic shift in the U.S. parcel-delivery landscape.
For USPS — which recorded a nine-billion-dollar loss last year — losing Amazon’s business would represent a major financial blow.
The agency has been modernising its operations, investing in electric vehicles and upgrading its fleet, but analysts warn that the loss of its largest customer could seriously undermine long-term viability.
Amazon spokespersons have declined to confirm any final decision, describing the situation as “contingent on continued dialogue.” The company emphasises its commitment to maintaining delivery reliability for customers, even as it prepares to significantly scale up its private infrastructure.
Should Amazon execute the withdrawal, the U.S. shipping market may undergo a profound transformation, with Amazon emerging as the dominant delivery force — reshaping competition and potentially sidelining long-established carriers.
That would mark a landmark moment in the evolution of America’s logistics ecosystem.
