Amazon Turns The Blade

https://americanjournaldaily.com/am...pjnewsletter


Amazon to End $6 Billion USPS Partnership and Launch Private Delivery Network
By Cole Harrison
Amazon to End $6 Billion USPS Partnership and Launch Private Delivery Network
We've all made the bargain. That slick promise of an easier life, delivered right to the door, is just too good to pass up. But you know that nagging feeling you get when another local shop shutters its windows, or a once-proud institution looks a little weaker? It's the sense that the true cost of all this push-button convenience is much higher than we're being told.

It's the kind of deal you strike with a corporate behemoth. We welcome them in, assuming their success will lift everyone up. But what happens when the terms no longer suit them? What happens when these giants, having used our own systems to achieve unparalleled power, simply decide they're done with the partnership? The bill for their ambition always arrives, and you can be sure they don't plan on paying it themselves.

From 'The Daily Wire':

Amazon is planning to end its long-standing tie-up with the U.S. Postal Service as the e-commerce giant prepares to expand its nationwide delivery network, the Washington Post reported on Thursday, citing three people with knowledge of the matter…

The online retailer has long been the top customer for USPS, providing more than $6 billion in annual revenue in 2025, the report said. Losing its business would be a major blow to the independent government agency that has been hit by an 80% decline in first-class mail volume since 1997.

And there you have it. After years of using the taxpayer-backed U.S. Postal Service as its personal workhorse, Amazon is getting ready to cut it loose. The company that clogged our mail system with billions of packages, all while squeezing out preferential treatment, is now dumping it. This isn't innovation. This is the predictable final act of a corporate predator. And guess who gets left holding the bag? (Hint: it's you).

A Sweetheart Deal Turns Sour
For a long time, Amazon had it made. The company's entire business model was supercharged by "negotiated service agreements" with the USPS—special contracts that have historically "favored big companies over individual retailers and small businesses." Amazon became the post office's biggest client, and in turn, the USPS became dangerously dependent on one woke corporation.

This arrangement worked beautifully for Amazon, as long as they were in charge. But then Postmaster General David Steiner dared to suggest leveling the playing field. His plan to "democratize" these deals for smaller businesses was a direct threat to Amazon's throne. And just like that, the deal wasn't so sweet anymore. Now, Amazon threatens to take its ball and go home, a move the Washington Post warns could "wreak havoc" on the postal agency's finances—a disaster that will land squarely on the American taxpayer.

Paving the Roads for Bezos's Empire
So what's Amazon's grand plan? To unleash its own private army of delivery vans across the country. Don't call it competition. Let's call it what it is: a colossal new burden on public infrastructure. Every single one of those blue vans is another weight on your local roads, another vehicle clogging up traffic, another engine rumbling through your neighborhood.

Who pays to maintain those roads? You do. Not some faceless board of directors in Seattle. Amazon, one of the wealthiest entities on the planet, is effectively offloading its operating costs onto the public. It is building a private logistics empire on a foundation of taxpayer-funded asphalt. This isn't the free market at work; it's a corporate shell game.

Who Picks Up the Tab?
The fallout from this will hit every citizen in two ways. First, the USPS, already teetering on the edge and now facing a multi-billion-dollar budget crisis, will be pushed to the brink. This will ignite inevitable calls for a federal bailout—another great American institution propped up by your money.

Second, they've created a new " Amazon Tax," and it's not one you can opt out of. It's paid in potholes, traffic jams, and ever-higher costs. We are being forced to absorb the true price of "free shipping," not on a website, but in our daily lives and through our tax bills. This is the ultimate bait-and-switch: hook the country on convenience, then stick it with the invoice.

So the next time you see one of those ubiquitous blue vans, remember the real story. This isn't just about packages; it's about who really pays the price for corporate convenience.

Key Takeaways
Amazon is abandoning the USPS after using it to build its delivery dominance.
This shifts the cost of Amazon's logistics onto public roads and infrastructure.
Taxpayers may be forced to bail out a financially crippled Postal Service.
This is an example of big corporations socializing their costs for private profit.

Not an expert by any means, but I'm a little confused. I thought I read concerns that Amazon had a sweet deal with USPS that essentially gave it a lower costs due to the volume and the last mile costs incurred. Now I'm hearing that by leaving the USPS, it is going to cost the USPS more. Which is it: messing with the American public by using USPS or messing with the American public by leaving?

Also, if they leave the USPS and decide to use their own vehicles on US roads, then most states or the Federal Government can recover the road-wear costs by a targeted tax on delivery vehicles of a certain size and purpose. Essentially raise a tax on vehicle registrations for vehicles which serve a purpose that the USPS would normally serve.

And, of course, reduce the number of USPS vehicles, drivers, and probably some workers ( who would probably move over to Amazon anyway).

Just my thoughts.

Amazon's decision to leave the U.S. Postal Service is not just about building its own delivery network. It is a clear monopoly move that reshapes the playing field in Amazon's favor. For years, Amazon's massive volume helped subsidize the Postal Service's operations, keeping rates relatively low for everyone else. Now, with billions in revenue gone, the USPS will have to spread its costs across the smaller retailers who still rely on it.

Amazon can absorb these changes. Small businesses cannot. Rising shipping costs could force them to either raise prices or eat the losses, a choice that puts them at a direct disadvantage. Meanwhile, Amazon's own logistics empire runs unaffected, leaving it even more dominant.

Weakening the USPS nudges sellers back onto Amazon's marketplace, where the company controls fees, data, and delivery. The exit may be framed as efficiency, but the effect is clear. Amazon has used its size to tilt the shipping system in its favor and leave small competitors to pay the price.

Let me preface my comments by saying that I detest these corporate retail giants. Amazon, Walmart, Home Depot, CVS etc. all were instrumental in killing Main Street. If you did not grow up pre-big box, you don't have a clue. It seems normal. Truthfully though the politicians are the real reason why this came to pass but we will leave it there. They also gave rise to the dominance of China in our markets, but consumers are just as guilty because they demanded ever cheaper prices even at the cost of their own jobs.

Now to the topic of the Amazon/USPS nexus. I don't blame Amazon. I blame the USPS and politicians behind the scenes that allowed a lopsided unfair deal to be inked in the first place. Talk about zero business acumen and lack of foresight. Jeez, it is so symbolic of how our government sees our tax dollars as their play money. They don't handle our funds with care. They squander our funds like drunken sailors. You can look in any direction and see billions just set on fire at every level.

Amazon has a fiduciary responsibility, and they are doing what they feel they need to do. Not their bad. They have also cut most ties with UPS.

As far as things like infrastructure burden that is a tough nut to crack. Singling out Amazon will never pass legal review at even the lowest levels. They comply with law just like UPS, FedEx, DHL and all common carriers. They register their vehicles and pay excise taxes (unless politicians gave them yet another break). Why would you single out Amazon over UPS?

Yes, I blame the USPS. Too easy to rail against these massive corporations and characters like Bezos. He played the capitalist game and won. He had better strategists and negotiators. Personally, I don't like the man, but he did what I would hope to do in his shoes. Grow something as big as possible and Amazon shareholders agree.

PS: Given the state of USPS mail delivery in my area no wonder Amazon is not thrilled with the service. Lots of my mail is lost or takes ten days to travel within my State.

PPS: Blame the Congress for the USPS financial hole with their onerous pension funding requirements. This happened because the pols bowed to their union masters and lobbyists. Then you have the virtue signaling that comes with requiring the USPS to purchase 9.6 billion dollars of electric vehicles for no discernable reason other than to appease a certain voting bloc.




Sound familiar?

While the Postal Service may be struggling with inefficiency,

Amazon is simultaneously leveraging its monopoly power in a way that disadvantages smaller competitors who still rely on USPS for affordable shipping.

Yes, they are doing what is best for them. Surprising? It shouldn't be. What should they do? The FTC has an anti-trust lawsuit against Amazon that is working its way through the courts with a recent SC ruling against an Amazon attempt to dodge the lawsuit. That is how this is going to play out and, in the meantime, Amazon will continue to what they need to do for their shareholders.

These large retailers are the new paradigm for this era, and they are not going away unless consumers decide to pay more to support smaller businesses but then you get into the really complex topic of where goods are produced and how everything has been offshored etc.

UPS just lost Amazon to FedEx (FedEx will only deliver large packages with Amazon self-performing the rest) and they have to be creative and deal with it. Not to mention they planned for such an event unlike the USPS who are napping until the sky falls and then scream for help. Ridiculous management or lack thereof.

I would love to know exactly how Amazon (or any giant corporation) is "woke". Or even what that is supposed to mean. And that was part of the original post, so do not blame me for bringing it up.

Here is not the venue for your baiting question, the proper venue is with the author of the article in question.

As to "woke corporation" generally that definition cane be found in may places in the internet and it's scientific or business articles and studies which boil down to a woke corporation is a corporation which prefers to engage in discriminatory and unconstitutional discrimination against certain genders and races to give preferences to certain groups over others contrary to the 14th Amendments equal protection.

Also since I am banging out a reply anyway, I will add that Amazon supports many, many small businesses in it corporate model, just none located with in the USA and heavily weight towards China based small companies.

I expect a significant postal rate increase.

I doubt the USPS will cut costs or eliminate waste to make up the lost revenue. So, I guess they will increase the only thing that they have any chance of getting through.

Your definition of woke is pathetic. And just the opposite of reality as well. All one has to do is search real news and genuine websites.

There's no question Amazon, et al, are "woke" in terms of DEI and ESG goals, but none of that is relevant to the OP's complaint about the Amazon/USPS relationship.

Personally, I am hoping this is the end of USPS parcel services, and not because I think they're service is bad or too expensive, it's because the USPS has been losing money on parcels for decades, in no small part because of inexpensive flat-rate shipping prices and the boxes they give away for nothing; I was shocked the first time I requested boxes via my online USPS account, which were delivered in bulk for free!

Brian

After looking for info on this topic I found that the divorce is NOT final and that the "reporting" "facts" all originate at WaPo. The two parties are in contract negotiations which have stalled. Considering that Jeff Bezos owns WaPo and the article is based on
(anonymous sources) this article has zero credibility.

Next

Yeah, heaven forbid anyone except straight white men actually having rights. Somehow I suspect that the post office will survive. Even though they are only charging half of what it cost in 1847.

If I would've read the "key takeaways" first, I wouldn't have bothered with the article. It's just a piece to prop up the writers "key (opinions, assumptions) takeaways".
Just the fact a writer thinks I need them to provide me with key takeaways from their article.., is offensive.

Sorry, don't normally put my 2c into non stamp related stuff but I do enjoy reading threads like these.
I appreciate members that take the time to share and post in all sorts of topics.

Something doesn't quite seem right. I'm wondering how exactly this will all work with very small packages. The mailbox was much safer than tossing them them in the snow (we get that here in Minnesota). And how on earth is Amaz going to deliver in vast rural areas? How much to send an Amaz truck to the middle of nowhere? I suspect contractors with cars like an Uber, but we all know that isn't getting cheaper. Stamps.com is still a better deal for small businesses. Interesting. (I shorted to Amaz. I really don't need to give them free advertising ;) )

One of my brothers owns a small mail-order company that specializes in "spa" quality fragrances, soaps, shampoos, and so on. He tried to remain completely independent for years, but found he simply could not compete with the enormous financial power of Amazon-listed companies to whom they were constantly losing business. Those companies were not better than his nor did they sell better products and their prices were not better -- but they were on Amazon, a website millions of people go to automatically today. That's how Amazon has built itself into what is perilously close to a monopoly on what used to be called "mail order" products.

Monopoly power in the U.S. is forbidden by federal law and has been ever since the days of the great oil, railroad, steel, and other monopolies over a century ago. Despite often providing good products, their owners ended up doing great damage to the American political and economic systems as any student of history knows. Monopolies stifle other businesses, they manipulate elections through bribery and intimidation, they frequently abuse labor often to the point of violence, and so on. A century ago, these mega-corporations dramatically violated democratic ideals and threatened our whole "equal opportunity for all" principle, Our current mega-corporations headed by men like Jeff Bezos seem to be doing this all over again today. Our current housing shortage which drives up first homes for millions of Americans today, for example, is directly tied to corporate decisions not to build cheaper "starter" homes. Grocery prices are set by huge food processors, no longer by thousands of independent farmers. Many of these wealthy already seem to be benefiting from federal handouts ("socialism for the rich?") through favorable treatment and benefits such as keeping corporate tax rates very low, for one thing, not enforcing corporate regulations for another (weakening environmental and gas mileage rules come to mind).

But we are not in an era where government cares about these things -- even if we're facing these very same issues with multi-billionaires like Bezos, Musk, and Zuckerberg. If Jeff Bezos can create his own "postal service" it could easily destroy, and would certainly damage very badly, the over 200-year old national postal system this country has historically relied upon. Reformers who pushed for such reforms over a hundred years ago would be appalled. This was briefly tried about 50 years ago with IPSA (Independent Postal Service of America) which was ruled legal by the courts (amazingly) but failed on economic grounds, something unlikely to happen if Bezos tries this. He already runs an enormous nationwide pharmacy service which threatens to further decimate local drug stores and a grocery delivery service and is starting a service selling new cars! He could end up with a stranglehold on the entire consumer economy. Give that some thought.

Imagine if a private company owned all our national parks and could do with them and control them whatever way they wanted. Or if they somehow bought up all our interstate highways and could charge for their use which meant they could stifle free trade? Our educational system, especially our great universities, has always been the envy of the world. Students come here by the tens of thousands rather than our young people going overseas for an education. That has now come under increasing attack by government and by the wealthy who flex their financial power by demanding that these schools do or don't do what they insist. That's not freedom of education at all. When the Japanese and Chinese briefly tried buying up ("investing in") American corporations some years ago, people screamed bloody murder -- but it's okay for a single billionaire to do that?

We're now in a second Gilded Age with this wealthy class who pay some of the lowest taxes in the world, and have lower tax rates than all the rest of us. But having paid a lower price of admission, they still get to run much of the country anyway. You and I likely pay income taxes somewhere between 25% and 35%. Jeff Bezos' personal tax rate it under 1%. His company, Amazon, pays about 15% annually in federal taxes, varying each year as it does better or worse.

This threat to run an Amazon postal service -- if it's real, and maybe it's not -- would be a disaster for the U.S. Postal Service. Congress has the power to deal with this if it wants to, but given the conservative pro-business can-now-do-anything it wants to do climate in Washington, it won't. Congress could outlaw special mail delivery deals with companies like Amazon. Congress could tax companies more if they benefit greatly from federal social services, a kind of corporate VAT tax. This is done in many countries. They could redesign the tax system back to what it used to be with far higher tax rates above a certain extremely high income level. The highest marginal income tax rate in U.S. history was 94% which applied to the highest income earners (over $200,000 equivalent to $3 million a year in today's money) for the WWII tax years 1944 and 1945. Even more impressive, the rate was only slightly reduced to 91% for the follwing almost 20 years from 1945-1963, a period of tremendous economic growth, putting the lie to the often-heard claim that high taxes will stifle economic growth. Like all "graduated" tax systems, this rate only applied to the part of your income above a certain very high level, never to anyone's entire income. Elon Musk, now a trilliionaire, would still keep billions of his income every year -- so hardly a burden like taxes are for the rest of us. Today, the highest income tax rate, applied only to income above a certain level, not to all one's income, is about the lowest in modern history. We all hate taxes, but maybe what we should hate is the unfair way they are applied?

Theodore Roosevelt (R) and Woodrow Wilson (D), both champions of reining in abusive corporations a hundred years ago, supporters of the adoption of a federal income tax, of regulations on business, of the rights of labor, and other reforms, must be turning over in their graves right about now.