Amazon and usps seal 10-year package delivery deal

Amazon, the world's largest e-commerce company, has agreed to a 10-year deal with the US Postal Service (USPS) to deliver packages across the country, including rural areas. Under the pact, Amazon will maintain 80% of its current package volume, around 1 billion annual deliveries, through USPS.

Agreement bolsters postal service struggling with liquidity crisis

The deal is a boost to the financially strapped USPS, which faced the risk of suspension due to liquidity issues. To address this crisis, the postal service has requested a congressional increase in its borrowing limit and has put up its facilities for private logistics companies to use, a move Amazon participated in with a February bid.

Amazon expands rural reach with 4,000 million investment

Consistent with its goal to accelerate deliveries to rural areas, Amazon has invested 4,000 million dollars in a plan that includes hiring local business owners in small towns to work as part-time package delivery contractors. The company aims to have 200 rural sorting hubs by year-end to prepare packages for the final leg of residential delivery.