- Amazon and the U.S. Postal Service have reached a tentative agreement regarding package handling, averting a larger potential standoff.
- The new deal involves a 20% reduction in Amazon's shipping volume with USPS, a significant decrease from the previously considered 66% cut.
- This agreement is crucial for the USPS, which relies on Amazon as its largest customer, accounting for nearly 15% of all deliveries and approximately $6 billion in revenue last year.
- The deal, which is pending review by the Postal Regulatory Commission, ensures Amazon retains USPS for "last-mile" deliveries, particularly in rural areas where its own network is still developing.
- The resolution follows a bidding process initiated by Postmaster General David Steiner, where USPS re-engaged with Amazon after other bids did not meet the agency's financial and volume needs.
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