Amazon doesn’t need the blame for the Publish Workplace going underneath

[ad_1] Amazon is occurring the defensive after a report from The Wall Road Journal revealed that the ecommerce large plans to slash shipments with america Postal Service, which mentioned this week that it’s working out of cash. In a prolonged assertion revealed on Wednesday, Amazon says it didn’t need to cut back shipments with the USPS, and that negotiations solely stalled after the USPS “abruptly walked away” from negotiations for a brand new contract.

As reported by the WSJ, Amazon plans to chop packages despatched by means of the USPS by no less than two-thirds by this fall, across the identical time its contract with the unbiased federal company is ready to run out. Amazon claims it’s been working with the USPS for over a yr on a deal “that may carry them billions in income,” however the company walked away on the “eleventh hour” throughout negotiations final December.

At the same time as Amazon invests billions in constructing out a sprawling community of supply and logistics companies, it nonetheless works with the USPS for last-mile deliveries — or the ultimate leg of a cargo — particularly in rural areas. The WSJ says the USPS presently handles round 30 to 40 % of Amazon deliveries in additional distant areas, the place transport prices are larger, and the place the USPS has a mandate to ship six days per week. However huge companies like Amazon reportedly get discounted charges on transport with the USPS, one thing the company is now not negotiating with companies individually, in line with the WSJ. The supply mandate, coupled with discounted charges for giant shippers, has dealt a blow to the USPS’s funds.

As a part of efforts to shore up income, the USPS applied a brand new bidding course of for last-mile deliveries. “There’s just one factor I'm completely sure of — if we proceed to do issues the way in which we’re doing it in the present day, we’re lifeless in a few yr, and so I've acquired to exit and check the market on this value to seek out out if it’s a good value,” Postmaster Basic David Steiner instructed Reuters final yr.

Throughout a listening to on Tuesday, Steiner reiterated that the USPS will run out of cash in lower than a yr if Congress doesn’t enable it to borrow additional cash and lift the worth of postage. “One straightforward motion, growing our borrowing authority, buys us time… Time that we are able to use to greatest decide what the Postal Service ought to do to greatest serve the American public,” Steiner mentioned, in line with The New York Occasions.

Amazon says it has “repeatedly requested engagement” with Steiner, and that the corporate “acquired no response” to the bid it submitted in February 2026. “We’ve submitted a bid as a part of their new public sale idea and hope to proceed our partnership, even at a diminished stage,” Amazon’s assertion says. “Nevertheless, with out long-term certainty, we now have to organize to satisfy our clients’ supply wants whatever the final result of the public sale.”

Steiner instructed Reuters that the USPS delivers round 1.7 billion Amazon packages annually. He added that he would “like to proceed” the company’s relationship with Amazon however “at a good value.” The USPS didn’t instantly reply to a request for remark.