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After nearly three decades of working together, Amazon (AMZN) is ending its delivery relationship with the United States Postal Service, a move that significantly alters how packages are moved across the country, according to MSN.

The partnership once played a major role in Amazon’s rapid expansion while generating billions in yearly revenue for USPS. The decision comes as the Postal Service continues to struggle financially, including a reported $9.5 billion loss in its most recent fiscal year.

For much of Amazon’s growth, USPS provided nationwide coverage, especially in rural and remote areas where private carriers often cannot operate profitably. That reach allowed Amazon to deliver to virtually every address in the country, making the arrangement one of the largest public-private logistics partnerships in U.S. history. Recent contract negotiations and changes to USPS pricing appear to have pushed Amazon toward a different approach. Instead of renewing the agreement, the company is shifting more deliveries to its own expanding logistics network, tightening its control over speed, cost, and customer experience.

MSN notes that the shift raises serious concerns for workers. Analysts estimate that as many as 100,000 jobs connected directly or indirectly to Amazon’s shipping volume could be affected across postal operations, transportation, and contract delivery services. Although the changes may unfold gradually, declining package volume could lead to staffing reductions across multiple regions.

For USPS, losing Amazon removes a key revenue source that helped offset long-term declines in traditional mail. Without that income, the agency may be forced to accelerate cost-cutting, restructure routes, and reduce staffing through attrition and reorganization. At the same time, consumers may begin to notice changes in delivery patterns. In urban areas, Amazon drivers and third-party contractors are likely to take over more deliveries, while in less populated regions customers may experience shifts in delivery timing or service availability as Amazon adjusts its logistics footprint.

The Postal Service is now exploring new ways to stabilize revenue, including opening its delivery network to competitive bids from other retailers and logistics companies. The separation highlights the growing divide between public service obligations and the fast-moving demands of modern ecommerce. As private companies expand their own delivery systems and public institutions fight to remain financially viable, the end of this partnership may be remembered as a defining moment in the evolution of American logistics and commerce.

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