Amazon reportedly considering dropping USPS and building a competing postal service

Amazon is considering ending from its long-standing contract with the United States Postal Service and building out its own competing nationwide delivery network, according to the Washington Post.

The current agreement between the e-commerce giant and the USPS expires in October 2026. The two sides have spent months negotiating what the next version of the contract would look like, but those negotiations have been complicated by President Trump’s push to privatize the USPS, the Post reports.

Under the current agreement, Amazon pays the USPS billions of dollars annually to distribute packages, accounting for roughly 7.5% of the agency’s revenue in 2025.

Amazon already operates a large transportation network that includes airplanes, Rivian electric vans, and a budding drone delivery service — though the drone program has faced a number of struggles this year, including most recently, a Federal Aviation Administration probe. It’s also developing autonomous vehicles through its subsidiary Zoox.