Amazon.com, Inc. (AMZN.US) negotiations with USPS deadlocked, planning to shift billions of packages to its own logistics network.

According to reports, Amazon.com, Inc. (AMZN.US) is considering terminating its large-scale transportation contract with the United States Postal Service (USPS) by the end of 2026, and transferring the related parcel business to its rapidly expanding logistics delivery network. Although this move has long been widely anticipated by the market, it could further worsen USPS's already dire financial situation - worth noting is that Amazon.com, Inc. is USPS's largest customer, contributing over $6 billion in revenue in 2025, and also one of the highest profit margin sources for the government agency's parcel business. Currently, negotiations between Amazon.com, Inc. and USPS on renewing the service agreement have largely stalled. It is reported that Amazon.com, Inc. had sought to extend the four-year cooperation period after the expiration of the existing contract on October 1, 2026, but USPS management tends to use a reverse auction model, opening postal facilities usage rights to the highest bidder among large transportation companies and retailers. Reports indicate that this strategic shift has essentially led to the cessation of negotiations and prompted Amazon.com, Inc. to initiate contingency plans to rearrange the delivery routes of billions of parcels. However, there is still a possibility for the two parties to reach an agreement, as USPS Postmaster General David Steiner and Amazon.com, Inc. CEO Andy Jassy have recently held meetings. For Amazon.com, Inc., this potential termination of cooperation highlights its overall strategy of building a vertically integrated logistics empire: through dense warehouse networks, its own parcel transportation fleet, and a large contractor and gig driver workforce, Amazon.com, Inc. is gradually internalizing most of the "last mile" delivery operations within the United States, and directly becoming a competitor to USPS, United Parcel Service (UPS.US), and FedEx Corporation (FDX.US). Historically, Amazon.com, Inc. has heavily relied on UPS and USPS for parcel transportation - USPS has long been its core partner for long-haul transportation and two-day delivery services, while Amazon.com, Inc. focused on order acquisition and fulfillment processes rather than the transportation business itself. However, logistics bottlenecks during the holiday seasons in the 2010s and continuously rising transportation costs prompted Amazon.com, Inc. to accelerate the development of its own logistics system by adding freight planes, delivery trucks, and delivery stations, gradually reducing its dependence on external carriers.