Amazon strikes deal with USPS that maintains 80% of package volume
Amazon.com announced it reached a new agreement with the U.S. Postal Service on package deliveries, and sources said the cash-strapped mail system would retain about 80% of its existing deliveries from its biggest customer.
That 20% cut is a dramatically better outcome for the postal agency than the two-thirds or larger reduction that Reuters reported last month Amazon had threatened.
USPS has a roughly $80 billion budget, and Amazon represented $6 billion in annual revenue to the agency, 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.
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