An Amazon package and a sign outside a USPS Post Office.

By Chris Spiker From Daily Voice

Amazon may cut ties with the US Postal Service and shift billions of packages into its own delivery network, according to a report.

The online retail giant is preparing to end its longtime delivery partnership with the USPS and expand its nationwide network, The Washington Post reported on Thursday, Dec. 4. The move would strip the USPS of a major revenue source, while accelerating Amazon's strategy of controlling every step of its supply chain.

Negotiations over a new "negotiated service agreement" have largely ended without a deal, according to The Post. Postmaster General David Steiner met with Amazon CEO Andy Jassy on Friday, Nov. 14, but discussions stalled.

The USPS plans to hold a reverse auction in early 2026, allowing major retailers and shipping companies to bid for access to postal facilities. That shift away from a direct agreement with Amazon prompted the company to reevaluate its partnership.

A plane for Prime Air, a cargo airline owned by Amazon.

A plane for Prime Air, a cargo airline owned by Amazon.

Unsplash - Forsaken Films

People familiar with the talks told The Post that Amazon could pull its packages from the USPS by the end of 2026. Amazon generated more than $6 billion in revenue for the USPS in 2025, making it the agency's top customer and accounting for about 7.5% of its annual revenue.

Losing Amazon's business would be a huge blow to the USPS, which posted a $9 billion loss as traditional mail volume continues to decline. Congress approved $107 billion in support for USPS in 2022, and industry groups have discussed a possible rescue plan with lawmakers.

Amazon spokesperson Steve Kelly said that the USPS has been a "long-standing and trusted partner," adding that the company remains committed to working with the agency. The Postal Service didn't comment on The Post's report.

The potential split comes after Amazon announced 14,000 layoffs in what's expected to be the largest corporate job cuts in company history. The online retailer has been expanding its systems powered by automation and artificial intelligence.

Amazon has already built a large delivery network of warehouse robots, AI-driven logistics tools, and gig-economy drivers. Experts say that if Amazon completely splits from the USPS, the company could become one of the most dominant "last-mile" delivery carriers in the country.

An anonymous industry executive expressed concern over the future of the USPS without Amazon.

"I'm scared to see them leave," the executive told The Post. "What the Postal Service will be left with is the absolute dregs."

Amazon founder and executive chair Jeff Bezos purchased The Washington Post in 2013.