Amazon Strikes Back: USPS Walked Away, Not Us — And Now We’re Cutting 2/3 of Shipments

In a dramatic escalation of the ongoing battle between Big Tech and the U.S. Postal Service, Amazon has fired back with a fiery public statement after reports surfaced that the e-commerce titan is slashing USPS package volume by up to 70% this fall. The move, first revealed by The Wall Street Journal, has sparked a war of words between the two giants — and it’s far from over.

The Bombshell Report That Shook the Industry

On Tuesday, The Wall Street Journal dropped a bombshell: Amazon is planning to drastically reduce its reliance on the United States Postal Service (USPS), cutting package shipments by at least two-thirds by this fall — just as its current contract with the federal agency expires. The report sent shockwaves through the logistics and retail industries, especially given the USPS’s recent warning that it’s running dangerously low on cash and could run out of money within the year.

Amazon Fires Back: “USPS Abruptly Walked Away”

But Amazon isn’t taking the blame lying down. In a lengthy and unusually candid statement published Wednesday, the company pushed back hard against the narrative, claiming that negotiations for a new USPS contract had been ongoing for over a year — and that the USPS “abruptly walked away” at the “eleventh hour” last December.

“We didn’t want to reduce shipments,” Amazon said. “We’ve been working with the USPS for over a year on a deal that would bring them billions in revenue. But at the last minute, they walked away from negotiations.”

The company claims it has “repeatedly requested engagement” with Postmaster General Louis DeJoy (now replaced by David Steiner), but says it received no response to its bid submitted in February 2026. “Without long-term certainty, we now have to prepare to meet our customers’ delivery needs regardless of the outcome of the auction,” Amazon added.

The USPS’s Desperate Gambit

The USPS, for its part, is in full-on survival mode. Earlier this year, the agency launched a controversial new bidding process for last-mile deliveries, aiming to shore up its finances by renegotiating rates with major shippers like Amazon. Postmaster General David Steiner has been blunt about the agency’s dire straits, telling Reuters that if the USPS continues on its current path, “we’re dead in about a year.”

During a congressional hearing this week, Steiner reiterated that the USPS will run out of money in less than 12 months unless Congress allows it to borrow more cash and raise postage rates. “One easy action, increasing our borrowing authority, buys us time,” he said, according to The New York Times.

The Rural Delivery Dilemma

The stakes are especially high in rural America, where the USPS currently handles 30-40% of Amazon deliveries. These last-mile deliveries are expensive and logistically complex, but the USPS has a federal mandate to deliver six days a week to every address in the country — even the most remote.

Amazon, for its part, has been investing billions in building out its own delivery and logistics network, including same-day delivery hubs in small towns and rural areas. But it still relies on the USPS for the final leg of many shipments, especially in areas where it’s not yet cost-effective to go it alone.

The Bidding War That Could Change Everything

As part of its cost-cutting efforts, the USPS implemented a new auction-style bidding process for last-mile deliveries. Amazon submitted a bid in February 2026 but says it never received a response. “We’ve submitted a bid as part of their new auction concept and hope to continue our partnership, even at a reduced level,” the company said.

Steiner, meanwhile, told Reuters that the USPS delivers around 1.7 billion Amazon packages each year and would “love to continue” the relationship — but only “at a fair price.”

What’s Next?

With Amazon preparing to slash USPS shipments by two-thirds, the future of last-mile delivery in America is suddenly very uncertain. The USPS is running out of money. Amazon is building its own empire. And millions of customers — especially in rural areas — are caught in the middle.

One thing is clear: the era of cheap, reliable USPS delivery for Big Tech is coming to an end. And the battle between Amazon and the USPS is just getting started.

Tags: Amazon, USPS, last-mile delivery, logistics, ecommerce, shipping, rural delivery, contract negotiations, David Steiner, Wall Street Journal, viral news, tech industry, postal service crisis, delivery network, federal agency, cost-cutting, auction bidding, rural America, same-day delivery, billion-dollar deals

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