Exclusive-Amazon says it has reached deal with US Postal Service on package deliveries
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WASHINGTON, April 6 : Amazon.com said Monday it has reached a new agreement with the U.S. Postal Service on package deliveries.
Sources told Reuters the deal will result in Amazon, which is USPS's largest single customer, retaining around 80 per cent of its existing deliveries with USPS, or more than 1 billion packages per year.
Amazon’s plan to replace the Postal Service with its own nationwide delivery service posed an existential threat to the mail agency, which has a roughly $80 billion budget. Amazon represented $6 billion in annual revenue, according to two people familiar with the business arrangement.
"We're pleased to have reached a new agreement with USPS that furthers our longstanding partnership and will let us continue supporting our customers and communities together," Amazon said in a statement.
Amazon earlier had criticized USPS plans to auction off access to its last‑mile delivery network. The retailer had threatened to cut its delivery business at the cash-strapped Postal Service by at least two thirds, Reuters reported last month.
USPS did not immediately comment.
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