Seattle: Amazon is considering ending its long running delivery partnership with the United States Postal Service by the end of 2026 according to a report first published by the Washington Post and later cited by Reuters. The talks between the two sides on a new service agreement have slowed and no final decision has been made yet.
Amazon is currently the largest customer of USPS and its deliveries bring in more than 6 billion dollars a year for the postal agency. Losing this business would be a significant setback for USPS which has been struggling with financial losses for years. In its recent financial report the postal service recorded losses of around 9 billion dollars and said the decline in traditional mail continues.
Industry analysts say Amazon has been preparing for such a move for some time. The company has been expanding its own logistics and delivery network and recently invested billions of dollars to boost rural delivery services across the United States. Amazon deliveries handled by its own network have grown rapidly and are close to matching USPS parcel volume.
Despite this shift neither Amazon nor USPS has publicly confirmed plans to end the partnership. The Washington Post report said the negotiations were affected by USPS plans to change pricing and introduce a competitive auction process for large shippers.
Experts warn that if Amazon cuts ties it could have wide effects. Customers using Amazon may not see major changes because the company already manages a large share of its own deliveries. However other businesses and people who depend on USPS especially in rural areas could see slower services or higher prices if the postal service loses such a large source of revenue.