"You can't add capacity for hundreds of millions of packages overnight - it requires major capital investment, long-term infrastructure planning, hiring, and logistics coordination. We negotiated with [USPS] in good faith for more than a year to reach a deal that would bring them billions in revenue and believed we were heading toward an agreement."
"Our goal was to increase our volumes with USPS, not reduce them - until USPS abruptly walked away at the eleventh hour in December. The company said it was forced to act while awaiting the results of a new Postal Service bidding process."
Amazon announced plans to cut packages shipped through USPS by approximately two-thirds later this year, representing a significant reduction from the company's current 15 percent share of the Postal Service's package deliveries. The decision follows USPS's termination of direct negotiations with Amazon in December 2025, when Postmaster General David Steiner implemented a new competitive bidding process for last-mile deliveries. Amazon's contract with USPS expires September 30, and the company claims it notified USPS in October 2025 of the need for a new agreement by December. Amazon states it negotiated in good faith for over a year seeking a mutually beneficial deal, but USPS abruptly ended discussions to pursue the new bidding framework. This reduction threatens significant revenue for USPS, which reported a $9 billion net loss in fiscal 2025.
#amazon-usps-contract-dispute #postal-service-revenue-loss #last-mile-delivery-bidding-process #e-commerce-logistics
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