Amazon is reportedly ready to drop its USPS deal if negotiations fall through | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAIHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.Hamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessCreatorsMobilePolicySecurityTransportationReviewsExpandLaptopsPhonesHeadphonesTabletsSmart HomeSmartwatchesSpeakersDronesScienceExpandSpaceEnergyEnvironmentHealthEntertainmentExpandGamesTV ShowsMoviesAudioAIVerge ShoppingExpandBuying GuidesDealsGift GuidesSee All ShoppingCarsExpandElectric CarsAutonomous CarsRide-sharingScootersOther TransportationFeaturesVideosExpandYouTubeTikTokInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersExpandThe Verge DailyInstallerVerge DealsNotepadOptimizerRegulatorThe StepbackArchivesStoreSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.Amazon is reportedly ready to drop its USPS deal if negotiations fall throughComments DrawerCommentsLoading commentsGetting the conversation ready...NewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechAmazonCloseAmazonPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AmazonAmazon is reportedly ready to drop its USPS deal if negotiations fall throughAmazon says it’s still negotiating with the USPS on an extension of its delivery arrangement.Amazon says it’s still negotiating with the USPS on an extension of its delivery arrangement.by Stevie BonifieldCloseStevie BonifieldNews WriterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Stevie BonifieldDec 4, 2025, 5:12 PM UTCLinkShareIllustration by Alex Castro / The VergeStevie BonifieldCloseStevie BonifieldPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Stevie Bonifield is a news writer covering all things consumer tech. Stevie started out at Laptop Mag writing news and reviews on hardware, gaming, and AI.After over 30 years, Amazon may be cutting ties with the United States Postal Service as it looks to expand its own delivery network, as reported by The Washington Post. The outlet, owned by Amazon founder Jeff Bezos, cites anonymous sources who said negotiations between Amazon and Trump-appointed USPS Postmaster General David Steiner have reportedly stagnated, pushing Amazon to consider concluding the partnership altogether.Washington Post reporter Jacob Bogage noted in a post on Bluesky that “this was not Amazon’s preferred plan.” According to Bogage, Amazon wanted to extend its contract with the USPS, which is set to expire on October 1st, 2026, but the USPS planned to “auction off last-mile delivery contracts” instead.In a statement provided to The Verge, Amazon spokesperson Steve Kelly said, “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.”RelatedAn Amazon delivery drone snagged and cut an internet cable in Texas last week.Amazon is testing 30-minute deliveriesAmazon now lets Prime members add items to completed ordersAmazon’s plan to cut ties with the USPS isn’t final yet — it would reportedly only move forward with expanding its own delivery network if it can’t come to an agreement to extend its USPS contract. Amazon has called the USPS its “first and oldest business partner,” and contributed $6 billion in revenue to the USPS in 2025, making up about 7.5 percent of the Postal Service’s total revenue.If it left USPS behind, Amazon’s own in-house delivery network would rival that of the Postal Service. According to Pitney Bowes, Amazon handled 6.3 billion parcels in 2024, second only to the USPS with 6.9 billion, and could overtake the USPS by 2028, shipping an estimated 8.4 billion packages compared to the USPS’s 8.3 billion.Amazon spokesperson Steve Kelly:“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.”Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Stevie BonifieldCloseStevie BonifieldNews WriterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Stevie BonifieldAmazonCloseAmazonPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AmazonNewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechMost PopularMost PopularCrucial is shutting down — because Micron wants to sell its RAM and SSDs to AI companies insteadSteam Machine today, Steam Phones tomorrowApple’s head of UI design is leaving for MetaAntigravity’s 360-degree drone is here to help you forget DJIBMW iX3 first drive: a ‘New Class’ is in sessionThe Verge DailyA free daily digest of the news that matters most.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice. 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Amazon is reportedly contemplating a significant shift in its logistics strategy, potentially severing its longstanding partnership with the United States Postal Service (USPS) if negotiations fail to yield a mutually agreeable extension. This development, as reported by The Washington Post and subsequently detailed by The Verge, stems from a divergence in strategic visions between Amazon and the USPS, specifically regarding the future of last-mile delivery. The core of the issue revolves around the USPS’s planned auctioning of its last-mile delivery contracts, a move that Amazon finds disruptive and unwelcome, given the company’s extensive groundwork in establishing its relationship with the postal service.

The reported stalemate is attributed to the posturing of David Steiner, the Trump-appointed Postmaster General, who is advocating for a competitive bidding process for delivery contracts, contrasted with Amazon’s preference for a continued, expanded collaboration. This change in direction represents a potential disruption to what Amazon has termed its “first and oldest business partner,” a relationship that has spanned over three decades and has generated $6 billion in revenue for the USPS in 2025, constituting approximately 7.5% of the Postal Service’s total income.

Amazon’s spokesperson, Steve Kelly, has indicated the company’s continued willingness to work towards an extension of the partnership, emphasizing ongoing discussions regarding increased spend with the USPS. However, the abrupt shift in the USPS’s approach – the planned auction – has prompted Amazon to reassess its options, particularly as it eyes the potential to rival the USPS in last-mile delivery through its own expanding in-house network.

According to Pitney Bowes, Amazon's package volume has been rapidly increasing and by 2028, it could surpass the USPS in package delivery, handling an estimated 8.4 billion packages compared to the USPS’s projected 8.3 billion. This transition would solidify Amazon's position as a dominant force in e-commerce logistics.

The situation highlights a broader realignment within the delivery landscape, with increased pressure on the USPS to modernize its operations and compete with the agility of private-sector delivery networks. Amazon’s reaction underscores the considerable investment and established infrastructure the company has built around its USPS partnership. The potential consequences of a break could significantly impact both organizations, particularly as they grapple with ongoing challenges related to supply chain volatility, rising shipping costs, and evolving consumer expectations. The decision to evaluate all options, including expanding its own delivery network, suggests a proactive approach by Amazon, prioritizing customer delivery reliability and potentially positioning itself for continued dominance in the rapidly evolving e-commerce market.