Amazon has reached a new delivery agreement with UPS to strengthen its rural logistics network layout

Zhitong
2026.04.06 22:26

Amazon has reached a new delivery agreement with UPS, continuing to complete about 80% of its delivery business through UPS, with an annual package volume exceeding 1 billion. This move will enhance Amazon's delivery capabilities in rural areas and provide UPS with an important source of revenue, alleviating its financial pressure. Amazon also plans to invest $4 billion to improve rural delivery efficiency, with approximately 200 rural delivery stations expected to be established by the end of the year

Against the backdrop of deepening cooperation between e-commerce logistics and public services, Amazon (AMZN.US) has reached a new delivery agreement with United Parcel Service (UPS.US). This move not only provides important business support for the U.S. Postal Service but also helps Amazon enhance its delivery capabilities in rural areas.

According to informed sources, under the latest agreement, Amazon will continue to complete approximately 80% of its existing delivery business through United Parcel Service, with a scale exceeding 1 billion packages annually. This cooperation continues the long-standing partnership between the two parties.

For United Parcel Service, this agreement is of significant importance. As its largest customer, Amazon's business volume provides a critical source of revenue for this government agency, which has long faced financial pressure. In recent years, United Parcel Service has continued to record losses, and maintaining its partnership with Amazon is seen as an important "safety net" to stabilize its financial situation.

Although specific financial terms have not been disclosed, analysts point out that this agreement helps alleviate United Parcel Service's cash flow pressure. U.S. Postal Service Postmaster General David Steiner previously warned that without action, United Parcel Service could face a risk of running out of funds as early as next year. Currently, the agency has requested Congress to raise its borrowing limit and is attempting to open its delivery network resources to private enterprises to increase revenue.

Meanwhile, Amazon is also accelerating the improvement of its rural logistics network. Due to the high delivery costs in remote areas, the company still relies on a model that combines United Parcel Service with its own delivery system. Last year, Amazon announced a $4 billion investment to enhance rural delivery efficiency, including recruiting individual operators in small towns to participate in "last mile" delivery.

The company expects to establish approximately 200 rural delivery stations in the U.S. by the end of this year for package sorting and transfer, further shortening delivery times

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