seniorspectrumnewspaper – Amazon is reportedly considering ending its reliance on the US Postal Service. The Washington Post reported that the company may expand its own logistics network to replace USPS deliveries. Amazon currently spends more than $6 billion a year on USPS services. That spending represents nearly 8 percent of the Postal Service’s total revenue. The company’s USPS spending has increased from just under $4 billion in 2019.
The potential split appears tied to stalled negotiations rather than a strategic withdrawal. Amazon said it was surprised by USPS plans to run a reverse auction. Such an auction would require Amazon and other major shippers to compete for USPS capacity. Amazon stated that it hoped to extend a partnership that spans more than three decades. The company added that the agency’s sudden shift created uncertainty for its delivery network.
USPS has struggled with financial losses for years. Ongoing price increases and stalled negotiations may push Amazon to explore alternatives. The situation highlights growing tension between public services and private logistics giants. It also underscores the increasing complexity of maintaining large-scale delivery partnerships.
Amazon’s Expanding Logistics Network Increases Competitive Pressure
Amazon has spent the past decade building a massive logistics operation. The company purchased Boeing aircraft, deployed electric delivery vans and advanced drone delivery tests. Last year, Amazon handled more than 6.3 billion parcels. That total represented a 7 percent increase from the previous year. USPS handled roughly 6.9 billion parcels with only 3 percent annual growth.
These numbers show Amazon can already manage more than 90 percent of USPS’s parcel volume. This capability makes a full break from USPS more feasible than ever before. USPS continues to face modernization challenges. Its attempt to electrify its vehicle fleet stalled due to cost and planning issues. The agency also faces competition from private companies that move faster and invest heavily.
The Postal Service remains a critical public institution, yet it is under mounting pressure. Digital communication has reduced traditional mail volumes. Private delivery networks are transforming consumer expectations. This shift threatens the long-term stability of federal mail operations.
Amazon will likely continue evaluating its delivery strategy as negotiations progress. A complete separation from USPS could reshape the national logistics landscape. The outcome will influence shipping prices, delivery speed and the future of public mail services. The next phase of talks will determine whether Amazon and USPS maintain a partnership or diverge into direct competition.
