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By Sam Stevenson
Associate News Editor
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Amazon has told Newsweek it is not exploring the possibility of ending its longstanding partnership with the U.S. Postal Service (USPS) as it weighs a dramatic transformation in its Prime delivery operation.
A spokesman for the company made the remarks following a Washington Post article about how Amazon will go about exploring and expanding its own coast-to-coast delivery network.
Steve Kelly told Newsweek: "We are not planning to cut ties with the USPS—in fact, it’s the opposite. Without a doubt, our goal is to continue working with the USPS, as we have done for the past 30+ years, and are going to continue to push to reach an agreement."
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The USPS told Newsweek it had no comment "at this time."
Why It Matters
Any changes to Amazon's delivery services could hit the American logistics industry, critically impact the already struggling USPS, and further consolidate Amazon’s influence over e-commerce fulfillment and delivery nationwide.
The Postal Service, which has relied on Amazon as its largest customer with over $6 billion in annual revenue in 2025, could face significant financial instability if the partnership ends, according to The Washington Post.
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What To Know
Sources knowledgeable about the ongoing talks had told The Washington Post that Amazon was preparing to scale up its internal delivery infrastructure and may phase out its multi-billion-dollar package delivery agreement with USPS as early as the end of 2026.
The Postal Service currently delivers millions of Amazon packages—including the final leg, or "last mile," to customers’ doorsteps—in urban, suburban, and rural America.
Amazon’s own logistics network, already extensive in metro areas, would require a significant additional investment to match USPS’s nationwide reach, particularly in remote regions where margins are slim.
While negotiations between Amazon and USPS over renewing their current contract have stalled, with the key sticking point issue at hand being the reverse auction, Amazon confirmed that its relationship with the Postal Service remains ongoing.
"The Postal Service is a long-standing and trusted partner," Amazon spokesperson Steve Kelly said in a statement, adding that the company is considering all options to ensure reliable delivery for its customers.
Amazon is simultaneously piloting new logistics models aimed at ultrafast delivery, including Amazon Now, a service that promises 30-minute delivery of groceries and household items in select parts of Seattle and Philadelphia.
The program uses strategically located micro-fulfillment centers and gig economy drivers for rapid shipment, charging Prime members $3.99 per order.
The company says it delivered over 9 billion items in a day in 2024, underscoring both the massive scale and rapid evolution of its distribution operation.
What People Are Saying
Leo Raymond, managing director at Mailers Hub, a postal industry advisory firm, told The Washington Post: "Almost everybody nowadays does home delivery via internet sales, but you have UPS and FedEx and other businesses that have a piece of that market. There’s no business out there that can replace Amazon for the Postal Service. Amazon, with their own network, could hurt UPS and FedEx, too."
Amazon spokesperson Steve Kelly, said in a statement: "The USPS is a longstanding and trusted partner and we remain committed to working together. We’ve continued to discuss ways to extend our partnership that would increase our spend with them, and we look forward to hearing more from them soon, with the goal of extending our relationship that started more than 30 years ago.
"We were surprised to hear they want to run an auction after nearly a year of negotiations, so we still have a lot to work through. Given the change of direction and the uncertainty it adds to our delivery network, we're evaluating all of our options that would ensure we can continue to deliver for our customers."
Elena Patel, a senior fellow at the Brookings Institution and a former economist for the Postal Service’s independent regulator, told The Washington Post: "If any of the major last-mile delivery customers pull out and start building out their own network, which is what Amazon is doing, that is a fundamental threat to the Postal Service. And it’s a weakness that’s been sitting there the whole time."
What Happens Next
Amazon’s current deal with USPS is set to expire in October 2026, with final decisions remaining under review. Postmaster General David Steiner and Amazon CEO Andy Jassy are reported to have met virtually in November, leaving open the possibility of a new agreement.
Should Amazon move ahead with a fully independent network, the company would likely face massive investments in fleet expansion, labor and compliance with federal and local shipping rules. For consumers, the impact could mean changes in delivery times, pricing and regional service options, especially in rural America.
The Postal Service, meanwhile, risks greater fiscal instability and may require additional intervention from lawmakers or another rethinking of its business model to avoid further service cuts or price hikes.
Update 12/4/25, 10:30 a.m. E.T. This article was updated with more information and context.
Update 12/4/25, 01:35 p.m. E.T. This article was updated with a complete Amazon statement, reflecting the fact that the company is not planning to cut ties with the USPS but rather is locked in talks with them over their future relationship.
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