Find the latest technology news and expert tech product reviews. Learn about the latest gadgets and consumer tech products for entertainment, gaming, lifestyle and more.
A recent change in how the US Postal Service handles shipping partners appears to have forced Amazon to make alternative plans. The company reportedly plans to cut the number of packages it ships through USPS by at least two-thirds later this year.
It says the decision came after USPS ended negotiations “at the eleventh hour” in favor of a new bidding process.that Amazon plans to reduce the shipments it hands off to USPS. Last year, the company accounted for nearly 15 percent of the Postal Service’s package deliveries. Cutting that by nearly two-thirds diminishes one of the USPS’s most reliable sources of revenue. In fiscal 2025, the agency reported a net loss of $9 billion.story, the company said it notified USPS in October 2025 that it would need to complete a new deal by December. “You can't add capacity for hundreds of millions of packages overnight — it requires major capital investment, long-term infrastructure planning, hiring, and logistics coordination,” Amazon wrote.According to Amazon, USPS then pulled the plug on negotiations at the last second. “We negotiated with in good faith for more than a year to reach a deal that would bring them billions in revenue and believed we were heading toward an agreement,” Amazon wrote in a statement. “Our goal was to increase our volumes with USPS, not reduce them — until USPS abruptly walked away at the eleventh hour in December.”a new bidding process for last-mile deliveries, replacing a long-established one where USPS negotiated with shipping partners individually. He described the move as “a fair bidding process that enables the marketplace to find the best mix of local shipping attributes for the best volume-driven pricing.” Steiner was appointed to the post in May 2025, following the departure of former head Louis DeJoy. Amazon said it submitted a bid in February using the new system but hasn’t heard back. “This creates significant uncertainty for our long-term network planning,” the company said. “Despite this, we participated in good faith and submitted a bid in February 2026. We've received no response.” USPS plans to announce the bidding results in Q2 2026. Contracts are expected to be finalized by Q3. Despite apparently moving forward with the contingency plan, Amazon said it’s still “ready to continue this partnership.”to loosen USPS regulations and let him raise prices. Warning that the agency will “run out of cash” in about a year, he told a House subcommittee that he wants to raise the agency’s current $15 billion debt cap. He also asked for the ability to increase postage prices and reform its retiree pension obligations.
US Postal Service David Steiner Bidding Process
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USPS Warns of Financial Crisis, Potential Cash Shortfall Within a YearThe U.S. Postal Service is alerting Congress of a looming financial crisis and potential insolvency within a year. Postmaster General David Steiner is set to testify, outlining the agency's financial woes and requesting reforms including increased borrowing capacity, stamp price hikes, and possible service cuts like eliminating Saturday mail delivery. Failure to act could lead to the Postal Service's collapse, threatening employee payments and vendor relationships.
Read more »
USPS Faces Financial Threats as Postmaster Warns 'End of Postal Service as We Know It'USPS, which delivers to more than 170 million U.S. addresses, has a borrowing cap of $15 billion and has already hit that limit.
Read more »
USPS Warns of Imminent Financial Crisis, Could Run Out of Money Within a YearThe U.S. Postal Service is facing a major financial shortfall and warns Congress of potential collapse within a year if significant changes are not approved. Postmaster General David Steiner will urge lawmakers to approve reforms, including raising stamp prices, expanding borrowing limits, and potentially eliminating Saturday mail delivery. Failure to act could lead to inability to pay employees and vendors by February 2027.
Read more »
What to know about USPS’s dire financial state ahead of oversight hearingHere's what to watch for in Postmaster General David Steiner's first testimony before Congress, where he will discuss USPS's financial struggles.
Read more »
USPS Lowrider Stamps Will Make You Search Out Pen PalsCool cars of the culture cover your letters for just 78 cents each.
Read more »
USPS fundsThe most important stories for you to know today
Read more »