Amazon Eyes USPS Breakup to Launch Rival Mail Service

Amazon is considering terminating its long-term delivery contract with the United States Postal Service (USPS) to establish its own independent, competing nationwide postal network, according to a report by The Washington Post.

Why the Amazon-USPS Partnership Is at Risk

The current shipping agreement between the e-commerce giant and the federal mail service is set to expire in October 2026. While both parties have spent months negotiating a successor agreement, these high-stakes talks have grown increasingly complex. A primary driver of this friction is President Trump’s push to privatize the USPS, which has disrupted traditional negotiating terms.

Ending the partnership would deal a massive financial blow to the federal agency. Under the active contract, Amazon pays the USPS billions of dollars each year to handle last-mile deliveries. In 2025 alone, Amazon’s business accounted for approximately 7.5% of the postal service’s total revenue.

Tensions Rise Over Proposed USPS Shipping Auctions

Official statements from Amazon indicate growing friction behind closed doors. Amazon spokesperson Steve Kelly confirmed that while the USPS remains a “longstanding and trusted partner,” recent strategic shifts have complicated negotiations.

Specifically, Kelly expressed surprise at the postal agency’s proposal to “run an auction” for portions of its shipping capacity. This unexpected pivot has forced the retail giant to reconsider its logistics strategy.

“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,” Kelly stated, noting that Amazon is still attempting to find ways to extend the partnership despite the hurdles.

Building an Independent Logistics Powerhouse

If Amazon decides to bypass the USPS entirely, it already possesses a massive foundation to scale its own postal service. The company operates a sophisticated global transportation network comprised of cargo airplanes, custom Rivian electric delivery vans, and autonomous vehicles developed by its subsidiary, Zoox.

Overcoming Logistics Obstacles

Despite its massive infrastructure, Amazon’s path to total logistics independence faces regulatory hurdles. The company’s budding drone delivery program has experienced significant setbacks, including a Federal Aviation Administration probe following a recent drone incident in Texas. Scaling a nationwide postal alternative will require navigating these regulatory challenges alongside building physical infrastructure.