Amazon is considering ending its long-standing contract with the United States Postal Service and building its own competing nationwide delivery network. The current agreement between the e-commerce giant and the USPS expires in October 2026.
The two sides have spent months negotiating the terms of a new contract. These negotiations have been complicated by President Trump’s push to privatize the USPS.
Under the current agreement, Amazon pays the USPS billions of dollars annually to distribute packages. This accounted for roughly 7.5 percent of the agency’s revenue in 2025.
Amazon already operates a large transportation network that includes airplanes and Rivian electric vans. It is also developing a budding drone delivery service, though that program has faced a number of struggles this year, including a recent Federal Aviation Administration probe. The company is additionally developing autonomous vehicles through its subsidiary Zoox.