The deal would also position Amazon as the nation’s most widespread delivery service and would harm the Postal Service’s financial health, according to The Washington Post on Thursday (December. 4th 2025).
Amazon’s build-out of its own delivery network would strip the Postal Service of its largest customer, as the tech giant is on track to contribute $6 billion, or 7.5 percent, of this year’s revenue to the service, according to the report, which did not identify sources.
The Postal Service, which plans to conduct an auction early next year in which companies will bid for access to its facilities, would force Amazon to compete with national retail chains and regional shipping companies if it wins the deal, according to the report.
An Amazon spokesperson told the company remains focused on its partnership with the Postal Service and wants to hear more from the agency soon.
“We’ve been having conversations about expanding the partnership in a manner that would grow our spend with them, and we’re hopeful to hear more from them soon, with the idea to extend a business relationship that is 30 years old,” the company said in a statement.
“We were taken aback by the fact that they’d like to run an auction after close to a year of discussions, so we have lots more ahead of us. “With a directional change and uncertainty introduced to our delivery network, we are looking at all possible avenues that would allow us to keep delivering for our customers.”
A spokesperson for the Postal Service would not comment. Amazon has held talks with the Postal Service to negotiate a new service agreement but hasn’t reached a deal, the Post said. Now, Amazon is getting ready to withdraw the billions of packages it sends through the service by the end of next year.
But those are still on the table, not set, as Postmaster General David Steiner had a virtual meeting with Amazon CEO Andy Jassy on Nov. 14, and the company wants to reach an agreement, according to the report.
Doing without Amazon’s business would be devastating for the Postal Service, which has sustained multibillion-dollar losses every year for most of the past decade. Industry associations have been collaborating with lawmakers on a rescue package for the service, according to the report.
The news follows a series of other changes to Amazon’s delivery service.This week, for example, it announced that it is testing grocery and essential item delivery within 30 minutes in Philadelphia and surrounding areas, as well as in Seattle.
“Amazon is using specialized, smaller buildings for faster shipping through its fulfillment network — facilities strategically located near other warehouses and shipping hubs to where Seattle- and Philadelphia-area residents live or work,” the announcement read. “This allows us to prioritize the safety of employees who are picking and packing orders, lower the distance that delivery partners have to travel (less than 3 miles a lot of the time), and improve velocity with more people having access to groceries,” she said in an email, noting that faster delivery times for customers was one goal.
Amazon has been focusing on faster deliveries this year amid competition from companies like Walmart, Target, Uber Eats, and Instacart. In June, the company said it was extending next-day and same-day delivery to 4,000 towns; in October, a new feature debuted that allows Prime members to add last-minute items to their orders.
