Amazon Set to Slash USPS Shipments by Two-Thirds
Amazon plans to dramatically reduce its reliance on the US Postal Service when their contract expires this fall.
Amazon is preparing to gut its shipping volume through the United States Postal Service by at least two-thirds, according to sources familiar with the plans. The move would coincide with the expiration of Amazon's USPS contract this fall.
The shift is massive. Amazon has long been the Postal Service's single largest customer, making this a potentially devastating blow to USPS revenue. The e-commerce giant has been steadily building out its own delivery infrastructure for years, and this appears to be the next major step in that transition.
The exact details of what replaces that USPS volume remain unclear, but Amazon's investment in its own logistics network — from vans to planes to last-mile delivery partners — has been no secret. Cutting the postal cord by this magnitude signals Amazon wants to own as much of its delivery pipeline as possible.