Amazon is reportedly preparing to quit its partnership with the US Postal Service by the end of 2026, as it focuses on expanding its own delivery network in both the United States and globally.
The information was reported by The Washington Post — owned by Amazon’s founder Jeff Bezos — on Thursday, which cited three people familiar with the matter.
The USPS had about 7.5% of its revenue last year tied to the retail giant.
The service has faced multibillion-dollar losses over the past decade, with Congress approving a $107 billion financial assistance package to support it in 2022.
The media outlet further noted that these plans could change, as the two companies still aim to reach an agreement.
Approached by The Washington Post, Amazon‘s spokesperson Steve Kelly called the USPS a “long-standing and trusted partner” and added that the retail giant is seeking ways to extend their partnership.
However, if the deal falls through, Amazon will need to further expand its internal delivery network.
This would involve both increasing the number of delivery service partners and adding more vehicles from its partnered brands — such as Rivian.
Delivery Fleet
Amazon has been testing and including several electric delivery vehicles from different brands in its fleet.
The delivery fleet includes electric heavy trucks and delivery vans from Mercedes-Benz.
Just a couple of months ago, the retail giant was seen testing General Motors‘ BrightDrop vans — weeks before the Detroit automaker halted production of these vehicles.
However, most of Amazon‘s delivery fleet consists of Rivian electric delivery vans.
Amazon ordered 100,000 EDVs in 2019, to be delivered by 2030, as part of its early investment in the EV maker, and began deploying them in mid-2022.
As of the latest update in late October, Amazon‘s fleet included more than 35,000 Rivian EDVs — not only in the United States, but also in Canada, where the first units were recently delivered, and in Europe.
Despite the ramp-up being slower than originally expected, the company expects it “to grow quite meaningfully as we look at going into 2o26 and 2027.”
Outlook
When questioned if the 100,000 Amazon units were still on track, founder and CEO RJ Scaringe reaffirmed the target and said that Rivian is already “thinking about what comes beyond that initial 100,000 unit contract.”
Although Amazon has not officially confirmed a contract expansion, it has indirectly extended its collaboration with Rivian by signing a deal with Also, its micro-electric mobility spin-off.
Upon unveiling its first product(s), Also announced that it will provide Amazon with thousands of its new pedal-assist cargo quad vehicles.
These vehicles are large enough to carry over 400 pounds of packages, yet compact enough to operate safely in a bike lane.
Market Expansion
Amazon is present worldwide, which could require Rivian delivery vans to be used outside North America, where the EV maker currently operates.
Although Rivian is not yet selling in Europe (planned for 2027), it already has a presence there, managing repair services for the EVs Amazon has deployed on the continent.
The first commercial vans from the EV maker were first seen in Germany two years ago.
Recently, the company began hiring for the Mobile Support Service in the country, which will service fleet customers directly at their location.
According to RJ Scaringe, Rivian will launch in Europe next year with the R2 SUV — which will also be offered in right-hand drive versions, signaling its entry in the UK.
However, it is unclear whether the company intends to produce electric delivery vans in right-hand drive as well.
Last month, Amazon announced that “over 800 new Mercedes-Benz eSprinter vans will arrive in the UK in the coming months and will be deployed for Amazon deliveries.”
Rivian opened orders for fleet customers (besides Amazon) earlier this year, adding two food-related companies to its client base so far.
Other companies have been spotted testing the vans, though no official announcement has been made yet.
Earlier this week, Rivian said it will issue an over-the-air update to address a seat belt issue in 34,824 of its electric delivery vans, according to a recall notice from the US National Highway Traffic Safety Administration (NHTSA).
