By David Shepardson
WASHINGTON, April 6 (Reuters) – 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% 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.
(Reporting by David Shepardson and Jacob Bogage; editing by Chris Sanders)
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