Overview
- Amazon is reported to be reducing USPS-bound packages by at least two-thirds by September, and volumes have already begun to decline.
- Postmaster General David Steiner says talks with Amazon are ongoing ahead of the contract’s October expiration.
- The deal reportedly generates about $6 billion annually for USPS, which has warned it could run out of cash within 12 months.
- USPS moved major shippers into a competitive bidding process; Amazon says it submitted a bid after a year of negotiations and is preparing for a smaller partnership.
- Amazon is expanding its own delivery capabilities, including a $4 billion rural network build-out, and may route more last-mile volume to other carriers.