Amazon may be preparing to end its long-time delivery partnership with the United States Postal Service (USPS) and instead create a competing nationwide logistics and mail service, according to a report from The Washington Post. The move would mark one of the most significant operational shifts in Amazon’s history and could reshape the U.S. shipping and logistics landscape.
Contract Nearing Expiration in 2026
The current delivery agreement between Amazon and USPS is set to expire in October 2026. While both sides have been engaged in negotiations for several months, sources report that discussions have become increasingly complicated. A major factor affecting progress is the ongoing political debate over the possible privatization of USPS, originally pushed by former President Donald Trump.
Under the existing contract, Amazon pays USPS billions of dollars annually to deliver packages across the country accounting for approximately 7.5% of USPS revenue in 2025. Losing Amazon as a client could have a significant financial impact on the postal service.
Amazon’s Growing Logistics Network
Amazon’s interest in building its own postal service is not surprising. The company has spent years expanding its delivery infrastructure to reduce reliance on external carriers. Today, Amazon operates:
- A growing fleet of cargo planes under Amazon Air
- Thousands of delivery vans, including electric vehicles from Rivian
- A drone delivery initiative under Amazon Prime Air
- Autonomous vehicle development through its subsidiary Zoox
However, not all of these programs have run smoothly. Amazon’s drone delivery project has faced several setbacks in 2024 and 2025, including an active FAA investigation.
Why Amazon Might Make the Switch
Amazon controls one of the world’s largest e-commerce ecosystems, and building its own postal network would give the company:
- Lower long-term delivery costs
- Faster nationwide delivery capabilities
- More control over shipping quality and logistics planning
Industry analysts say the move could pressure delivery giants such as FedEx, UPS, and USPS, forcing further innovation and potentially lowering shipping costs for consumers.
Neither Amazon nor USPS has issued an official public statement regarding the report. With the contract deadline approaching in 2026, negotiations or competitive planning are expected to intensify over the next year.
