Amazon says U.S. Postal Service 'walked away at the eleventh hour' in negotiations

In a recent blog post, Amazon has shared its perspective on the deteriorating relationship with the U.S. Postal Service (USPS), revealing that contract renewal discussions broke down in December when the Postal Service unexpectedly withdrew from negotiations. The revelation follows reports indicating that Amazon intends to significantly decrease the volume of packages it ships via USPS, aiming for a reduction of at least two-thirds once its current contract expires at the end of September. Historically, Amazon has been the largest customer of USPS, making this potential shift noteworthy. Amazon stated, "Our goal was to increase our volumes with USPS, not reduce them — until USPS abruptly walked away at the eleventh hour in December." The tech giant highlighted that it had been engaged in negotiations for over a year, seeking to establish a new long-term agreement before the talks fell through. Despite the setback, Amazon has expressed a desire to maintain its partnership with USPS. The company has submitted a bid in the carrier's new auction process, hoping to continue collaboration, albeit at a reduced scale. In its statement, Amazon emphasized its willingness to work toward a resolution, saying, "We've repeatedly requested engagement with Postmaster General Steiner to work toward a solution. We want to find a path forward, but that window is rapidly closing." As of now, USPS representatives have not provided a comment regarding the situation.