Amazon.com Inc (NASDAQ:AMZN) is considering ending its decades-long contract with the United States Postal Service (USPS) and building out its own nationwide delivery network, according to a report from The Washington Post.
The current agreement between the eCommerce giant and the USPS is set to expire in October 2026.
Negotiations over the next contract have reportedly been complex, influenced in part by former President Donald Trump’s push to privatize the postal service, the publication said.
Under the existing deal, Amazon pays the USPS billions of dollars annually for package delivery, representing roughly 7.5% of the agency’s 2025 revenue.
Amazon already operates a large transportation infrastructure, including airplanes, Rivian electric vans, and a developing drone delivery service, although the drone program has faced regulatory challenges this year, including a Federal Aviation Administration probe. The company is also advancing autonomous vehicle technology through its subsidiary Zoox.
According to The Washington Post, negotiations between Amazon and USPS Postmaster General David Steiner, a Trump appointee, have reportedly stalled. Sources told the outlet that the USPS has proposed “auctioning off last-mile delivery contracts,” prompting Amazon to consider ending the partnership entirely.
Washington Post reporter Jacob Bogage noted on social media that this step “was not Amazon’s preferred plan,” and that the company had sought to extend the contract.
“We’ve continued to discuss ways to extend our partnership that would increase our spend with them, and we look forward to hearing more from them soon - with the goal of extending our relationship that started more than 30 years ago,” Amazon spokesperson Steve Kelly said in a statement to the media.
Shares of Amazon traded down 1.9% at $228 on Thursday afternoon, but the stock has added almost 4% this year.