Getting a package to your door is the hardest and most expensive part of delivery.
The Big Story
Amazon and the United States Postal Service renewed a multi-year deal, keeping USPS as a key last-mile partner. The update expands rural delivery while Amazon handles more packages in cities.
The Two Spins
From the Left
- Expanding USPS delivery helps keep service reliable in rural areas where private carriers don’t always reach.
- The added volume brings in billions each year, helping stabilize USPS finances.
From the Right
- Relying heavily on Amazon ties a public system more closely to one company’s shipping needs.
- If Amazon shifts deliveries to its drivers, USPS could lose volume, making it harder to maintain service in smaller towns.
What This Means for Us
This is why you can get packages almost anywhere, even on Sundays. USPS covers less profitable areas, keeping delivery consistent.
How They Make Money
- USPS delivers over 7 million Amazon packages a day at bulk rates, helping offset declines in traditional mail.
- Amazon avoids building delivery in every ZIP code, saving billions by using USPS for the most expensive last-mile step.
Takeaway
Amazon cuts costs, USPS fills volume gaps, and both rely on scale.
The Number That Stuck With Me
1 million
About 1 million new delivery points are added each year, increasing the cost and complexity of delivery.