The online retail giant Amazon is preparing to dramatically reduce its reliance on the U.S. Postal Service for package deliveries, a decision that threatens to strip millions of dollars in revenue from the federal agency, according to a Wall Street Journal report published Tuesday.
The Seattle-based company, which has historically been the Postal Service’s largest customer, is working to slash its postal shipments by a minimum of two-thirds before its current agreement with the agency concludes this fall, the Journal reported, referencing sources with knowledge of the situation.
The retail behemoth has already begun scaling back its use of postal delivery services as it develops its own logistics network and explores alternative shipping partnerships.
Neither Amazon nor the U.S. Postal Service provided immediate responses when contacted for comment about the reported changes to their business relationship.
