Amazon.com, Inc. (AMZN.US) reached a new delivery agreement with United Parcel Service (UPS.US), strengthening its rural logistics network layout.

Against the background of deepening cooperation between e-commerce logistics and public services, Amazon.com, Inc. and United Parcel Service (UPS) have reached a new delivery agreement. This move not only provides crucial business support for the U.S. postal system, but also helps Amazon.com, Inc. enhance its delivery capabilities in rural areas. According to sources, under the new agreement, Amazon.com, Inc. will continue to use UPS for about 80% of its existing delivery business, amounting to over 1 billion packages per year. This partnership continues the long-standing relationship between the two parties. For UPS, this agreement is of significant importance. As its largest customer, Amazon.com, Inc. provides crucial revenue for the government agency that has long faced financial pressure. In recent years, UPS has been consistently recording losses, and maintaining its partnership with Amazon.com, Inc. is seen as a key "safety net" to stabilize its financial situation. Although specific financial terms have not been disclosed, analysts point out that the agreement helps alleviate the cash flow pressure on UPS. Earlier, Postmaster General David Steiner warned that without action, UPS could face the risk of running out of funds as early as next year. Currently, the agency has requested an increase in borrowing limits from Congress and is attempting to open up its delivery network resources to private enterprises to increase revenue. Meanwhile, Amazon.com, Inc. is also accelerating the development of its rural logistics network. Due to the higher delivery costs in remote areas, the company still relies on a combination of UPS and its own delivery system. Last year, Amazon.com, Inc. announced a $4 billion investment to improve rural delivery efficiency, including recruiting small-town entrepreneurs to participate in "last mile" delivery. The company expects to establish approximately 200 rural delivery sites in the United States by the end of this year for package sorting and transfer, in order to further shorten delivery times.