Amazon plans to cut packages sent through the USPS by at least two-thirds by this fall, around the same time its contract with the independent federal agency is set to expire. Amazon claims it’s been working with the USPS for over a year on a deal “that would bring them billions in revenue,” but the agency walked away
at the “eleventh hour” during negotiations last December.
Even as Amazon invests billions in building out a sprawling
network of delivery and logistics services, it still works with the USPS for last-mile deliveries — or the final leg of a shipment —
especially in rural areas. The
WSJ says the USPS currently handles around 30 to 40 percent of Amazon deliveries in more remote locations, where shipping costs are higher, and where the USPS has a mandate to deliver six days per week.