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

The move comes as the Postal Service continues to face financial challenges and seeks new revenue streams.
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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.

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“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."

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An Amazon spokesman says the uncertainty might push the company to stop using USPS as much, and it is evaluating all its options.

The move comes as the Postal Service continues to face financial challenges and seeks new revenue streams. However, the strategy risks alienating its most valuable commercial partner at a time when the agency needs stable income sources.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.