Amazon Reportedly Considers Ending USPS Partnership As Delivery Network Expands

According to a Reuters report, the potential change would reshape how the e-commerce leader handles millions of packages across the country as it broadens its own national delivery network.

• The Postal Service has been one of Amazon’s most important shipping allies for years.
• The independent federal entity logged a loss of $9.5 billion last year.
• Losing Amazon’s business could deepen the agency’s financial challenges.

 Amazon.com Inc. (AMZN) is reportedly weighing a significant shift in its U.S. delivery strategy, stepping back from its long-standing reliance on the U.S. Postal Service (USPS), a move that could unwind one of its longest-running logistics partnerships. 

According to a Reuters report, the potential change would reshape how the e-commerce leader handles millions of packages across the country as it broadens its own national delivery network.

Financial Stakes For USPS

The Postal Service has been one of Amazon’s most important shipping allies for years, and the retailer has delivered substantial annual revenue to the agency. 

According to the report, the independent federal entity has depended heavily on major commercial clients to help offset its persistent financial struggles. The agency logged a loss of $9.5 billion last year and has amassed more than $100 billion in cumulative deficits since the mid-2000s. Losing Amazon’s business could deepen the agency’s financial challenges.

Amazon’s stock inched 0.2% higher in Thursday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘neutral’ territory amid ‘high’ message volume levels. 

Amazon’s Strategic Pivot

The company has spent years expanding its internal logistics system, building new hubs, enlarging its fleet, and accelerating delivery speeds to hold an edge over retail rivals. In the third quarter, Amazon’s revenue rose 13% year-on-year to $180 billion, and net profit rose 39% to $21.2 billion.

In its latest Amazon Web Services’ annual tech conference, AWS re:Invent, the company also signaled that it is betting big on enterprise AI adoption through a slew of tool launches. 

AMZN stock has gained over 6% in the last 12 months. 

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