Amazon Reviews Options as USPS Weighs Competitive Auction for Contract

Amazon (AMZN, Financials) stated it is talking about its future collaboration with the USPS because its shipping contract ends next year. After hearing that USPS might switch to a competitive bidding method, the business is looking at other options.

The Washington Post stated that David Steiner, the incoming Postmaster General, is thinking about a reverse auction in 2026 that would make Amazon compete with other carriers for access to postal facilities. Amazon said the decision came out of the blue after months of talks.

In 2025, USPS made more than $6 billion from Amazon, making it the agency's biggest customer. The deal ends in October 2026, which makes things unpredictable for both sides.

USPS lost $9.5 billion last year, and if Amazon quits, it could lose much more money. Last year, Amazon's logistics network handled 6.3 billion packages; by 2028, it is expected to handle more packages than the USPS.