Amazon Considers Parting Ways With US Postal Service

Core Viewpoint - Amazon is reportedly preparing to sever its relationship with the U.S. Postal Service, which could significantly impact the Postal Service's financial health as Amazon accounts for $6 billion, or 7.5%, of its revenue for the year [2]. Group 1: Amazon's Delivery Strategy - Amazon's expansion of its own delivery service aims to make it the most prevalent delivery service in the U.S. [2] - The company is testing ultra-fast delivery of groceries and essential items in 30 minutes or less in Philadelphia and Seattle [6]. - Amazon is focusing on speeding up delivery times to compete with rivals such as Walmart, Target, Uber Eats, and Instacart [7]. Group 2: Impact on the U.S. Postal Service - The Postal Service plans to auction access to its facilities, which would force Amazon to compete with national retail brands and regional shipping companies [3]. - Losing Amazon as a customer could be disastrous for the Postal Service, which has faced multibillion-dollar losses for much of the last decade [6]. - Industry groups are collaborating with lawmakers on a rescue package for the Postal Service amid these financial challenges [6]. Group 3: Ongoing Negotiations - Amazon has been in discussions with the Postal Service regarding a new service agreement but has not reached a consensus [5]. - Despite the potential for severing ties, there is still hope for an agreement as the Postmaster General met virtually with Amazon's CEO [5]. - Amazon expressed surprise at the Postal Service's decision to hold an auction after nearly a year of negotiations, indicating ongoing discussions to extend their long-standing partnership [4].