Amazon.com has announced a new agreement with the U.S. Postal Service (USPS) regarding package deliveries, solidifying its status as USPS’s largest single customer. Under the terms of this deal, Amazon is expected to maintain approximately 80% of its current delivery volume with the Postal Service, which equates to more than 1 billion packages annually.
This agreement comes at a critical time for the USPS, which operates under a budget of roughly $80 billion. Amazon’s operations have become a significant revenue stream for the agency, representing about $6 billion annually. The online retail giant previously expressed intentions to possibly replace USPS with its own nationwide delivery service, raising concerns over the Postal Service’s financial stability.
In a statement, Amazon expressed satisfaction with the new agreement and highlighted its commitment to continue supporting customers and communities through the partnership with USPS. This marks a crucial step in preserving an ongoing working relationship between the two entities.
Recently, Amazon voiced criticism regarding USPS’s plans to auction access to its last-mile delivery network, indicating that such a move could drastically reduce its business with the Postal Service—potentially by two-thirds. As of now, there has been no immediate response from USPS regarding this agreement or the preceding criticisms.
This partnership is vital for both companies, enabling Amazon to ensure efficient delivery services while providing USPS with much-needed revenue during challenging financial times.
