Amazon reportedly considering dropping USPS and building a competing postal service

Amazon is reportedly considering ending its long-standing contract with the United States Postal Service (USPS) and establishing its own nationwide delivery network. The current agreement, which generates billions of dollars annually for the USPS and accounts for about 7.5% of its 2025 revenue, is set to expire in October 2026. Negotiations for a new contract have been complicated by political factors, including former President Trump's push to privatize the USPS. Amazon already operates an extensive transportation infrastructure, including airplanes, electric vans from Rivian, and a developing drone delivery service, although the latter has encountered regulatory challenges such as a recent Federal Aviation Administration investigation. Additionally, Amazon is advancing autonomous vehicle technology through its subsidiary Zoox, indicating a broader strategy to reduce reliance on traditional postal services and potentially disrupt the package delivery industry.