USPS plan to open hubs to rivals may cost agency its biggest customer: Amazon
Source: Scripps News
Posted 11:44 AM, Dec 24, 2025 and last updated 11:46 AM, Dec 24, 2025
The U.S. Postal Service's plan to raise cash by opening its distribution centers to other shipping companies could backfire, potentially costing the agency its biggest customer.
The USPS has a partnership with Amazon to deliver some orders to the online retail giant's customers. The contract brings in about $6 billion a year, which the struggling agency can't afford to lose.
But now, USPS plans to accept bids in late January or early February 2026 from other shippers for access to the service's distribution centers.
We see this initiative as a compelling value proposition for many shippers who we know are wrestling with the need to deliver to their customer as quickly and reliably as possible," said Postmaster General and CEO David Steiner in a statement. "Our solution is to establish a fair bidding process that enables the marketplace to find the best mix of local shipping attributes for the best volume-driven pricing."
Read more: https://www.scrippsnews.com/us-news/usps-plan-to-open-distribution-centers-could-cost-agency-its-biggest-customer-amazon
ToxMarz
(2,729 posts)In the near term probably wouldn't alter much. If they can offset Amazon's revenue with new revenue sources, great! If it allows smaller retailers to better compete with Amazon, even better.
NotHardly
(2,562 posts)Bluetus
(2,200 posts)logistics system. And once that is fully scaled, the others will just be competing for scraps.
UPS surely understands that is the game. And that is probably why UPS is opening its system. They all need to team up against Amazon.
By the same token, maybe Wal*Mart, Target, Home Depot, Costco, CVS, Walgreens, and others need to team up on the warehousing side.
Deminpenn
(17,281 posts)for final delivery.
ToxMarz
(2,729 posts)This article seems to be from Amazon's standpoint that they may be miffed that other retailers may be able to narrow the gap with retailer Amazon on their shipping advantage.
Be The Light
(130 posts)to bumfuck wyoming or your farm somewhere 15 miles in the middle of nowhere.
That would be unprofitable. They would mail that unprofitable stuff through the post office,
another crushing blow to USPS. I used to be a letter carrier. They've been trying to crush USPS as long as I can remember (and I'm pretty old!)
So that's what these company's will do. Deliver all the profitable stuff and leave the shit mail to USPS, who by law has to deliver to
all those addresses that are not only unprofitable but lose money.
Another brick in the wall.
popsdenver
(1,433 posts)that UPS, Fed Ex, and Amazon DUMPING their packages on the USPS for the very expensive "Last Mile Delivery",... in all of Rural America is hurting the USPS financially not helping it........
Deminpenn
(17,281 posts)UPS Mail Innovations: https://www.ups.com/us/en/supplychain/logistics-solutions/mail-innovations Note that USPS raised rates and UPS passed those along to their customers.
I'm not sure what Amazon is doing differently unless they are contracting with USPS to do everything from pick up at the Amazon warehouse to sorting and final delivery.
bucolic_frolic
(53,811 posts)When did we go corporate?