Core Viewpoint - Amazon is contemplating the termination of its contract with the United States Postal Service (USPS) to establish its own nationwide delivery network, with the current agreement set to expire in October 2026 [1] Group 1: Contractual Considerations - The ongoing negotiations between Amazon and USPS regarding the future contract have been complicated by political pressures, particularly President Trump's initiative to privatize USPS [1] - Under the existing contract, Amazon contributes billions of dollars annually to USPS, which represents approximately 7.5% of the agency's revenue projected for 2025 [2] Group 2: Amazon's Delivery Network - Amazon has developed a substantial transportation network that includes airplanes, electric vans from Rivian, and a nascent drone delivery service, although the drone program has encountered challenges, including a Federal Aviation Administration investigation [2] - The company is also working on autonomous vehicles through its subsidiary Zoox [2]
Amazon reportedly considering dropping USPS and building a competing postal service