USPS plan to open hubs to rivals may cost agency its biggest customer: Amazon

[BumRushDaShow]

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]

1. If Amazon had a better alternative they'd already be using it.

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. F*cl Amazon.

[Bluetus]

7. Absolutely. Amazon is just using FEDEX, UPS and USPS as it builds out its own

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]

3. UPS, FedEx and other shippers also use USPS

for final delivery.

[ToxMarz]

4. Ups, FedEx and other shippers aren't also the retailer

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]

5. yes they wont deliver

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]

6. I have to believe

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]

8. UPS, FedEx must have contracts or agreements with USPS for the "last mile" delivery

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.

[popsdenver]

10. DeJoy and his Republicans

have been doing every thing they can get away with to destroy the USPS.............ultimately to get it into the hands of the Corporations........THEN the Corporations can do what ever they wish, without regulations, over-sight. and at a much greater expense to the Public.............
The cost of them doing the last mile mail delivery, as well as package delivery to all of Rural America alone would result in Major Price increases for not only packages, but for first class mail delivery.......And a reduction of service to those people in Rural America.

Their hidden agenda would be a win-win. They would also succeed in destroying one of the largest Unions, or one of the largest unions!!

All those Republican Voters in Alaska would suffer immensely without the USPS.....If their deliveries were to be controlled by a private corporation, the cost would be staggering...........especially the costs of delivery to all of remote Alaska vs the USPS.

[bucolic_frolic]

9. Postmaster General and CEO

When did we go corporate?

[snot]

11. Interesting

that it's the USPS that amazon et al. want to deal with.

Fwiw, I did some rough calculations within the last few years and found that, as compared with UPS on a per-employee basis, the USPS served the most people in the most locations at the best price.