Amazon and USPS: A Renewed Partnership in Package Delivery

Amazon and the U.S. Postal Service have reached a new agreement to ensure continued package deliveries, securing about 80% of Amazon's current delivery volume with USPS. This deal alleviates the USPS's economic concerns, stemming from Amazon's previous plan to establish an independent national delivery network.

Amazon.com announced on Monday that it has signed a new agreement with the U.S. Postal Service concerning the delivery of packages. According to sources, the deal ensures that Amazon, USPS’s largest customer, retains around 80% of its existing delivery volume with the postal agency, equating to over 1 billion packages annually.

This new agreement alleviates tensions, as Amazon's earlier plans to build its own national delivery network posed a significant threat to the financially burdened USPS, aiming to potentially cut Amazon's USPS business by two-thirds. With an operational budget of roughly $80 billion, USPS counts on the $6 billion annual revenue from Amazon as a crucial source.

While Amazon had been critical of USPS's intentions to auction off access to its last-mile delivery network, the agreement reflects a mutual decision to sustain their enduring partnership. The Postal Service, meanwhile, has yet to comment on the recent developments.