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USPS Risks Losing Amazon as It Pursues New Shipping Contracts

KVIA•Wednesday, December 24, 2025 at 10:30 AM•CNN Newsource

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The United States Postal Service (USPS) is facing severe financial challenges, reporting a loss of $9 billion in the last year. To address this, USPS plans to open its last-mile delivery services to other shippers, which could jeopardize its lucrative $6 billion annual contract with Amazon. Amazon has expressed concern over this decision, indicating it may reconsider its partnership if negotiations do not align with its delivery network needs. The USPS is legally bound to provide universal service, which is costly, especially for remote deliveries. Experts warn that losing Amazon could further exacerbate USPS's financial instability, highlighting the need for continued government support to maintain universal service.

Key Details: • USPS lost $9 billion in the year ending September 2023. • The agency plans to accept bids from other shippers for last-mile services. • Amazon's contract contributes approximately $6 billion annually to USPS. • USPS is required to maintain universal delivery service across the U.S. • Package volumes have decreased by nearly 6% in the last fiscal year.

finance usps amazon shipping delivery

People & Organizations

David SteinerSteve KellyUnited States Postal ServiceBrookings Institute

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