Amazon reportedly considering dropping USPS and building a competing postal service

Amazon is reportedly exploring the possibility of ending its longstanding partnership with the United States Postal Service (USPS) and establishing its own nationwide delivery network. This shift comes as the current contract between the two entities is set to expire in October 2026. According to the Washington Post, negotiations for a new agreement have been ongoing for several months. However, these discussions have faced challenges amid political pressures, particularly from former President Trump’s efforts to privatize the USPS. Under the existing contract, Amazon contributes billions of dollars annually to the USPS for package delivery, which is projected to represent approximately 7.5% of the postal agency's revenue in 2025. Notably, Amazon has already built an extensive transportation network that features aircraft, Rivian electric delivery vans, and an emerging drone delivery system, although the latter has encountered several setbacks this year, including a probe by the Federal Aviation Administration. Additionally, the company is advancing its capabilities in autonomous vehicles through its subsidiary, Zoox.