This story was originally published on MyNorthwest.com.
Amazon and the U.S. Postal Service (USPS) have reached a new package-handling deal.
First reported by Reuters, Amazon will retain about 80% of its existing deliveries with USPS, equivalent to more than 1 billion packages a year. This deal means the post office will hang onto most of the business from its largest customer. Amazon represents roughly $6 billion in annual revenue for USPS, as it delivers around 1.7 billion packages annually for Amazon.
“We’re pleased to have reached a new agreement with USPS that furthers our longstanding partnership and will let us continue supporting our customers and communities together,” an Amazon spokesperson said in a prepared statement.
Amazon previously threatened to reduce its deliveries with USPS by two-thirds, according to Reuters. Still, Amazon stated it will continue to expand its own delivery service.
USPS, despite operating on an approximate $80 billion budget, warned officials it could run out of cash as soon as October. USPS has lost $118 billion in revenue since 2007.
The financial terms of the agreement have not been revealed, as of this reporting.