Amazon Unveils Backup Delivery Plan as Contract Talks with Postal Service Hit a Snag
Amazon has been working on a backup plan for delivering packages without relying on the US Postal Service, according to an internal document titled Project Aurelian. The plan aims to cover nearly every US ZIP code with Amazon's own delivery service, which would be a significant shift from its current reliance on outside carriers. This move is part of Amazon's efforts to speed up deliveries and reduce costs.
Amazon has already seen a significant increase in same-day or overnight deliveries globally, with a 40% increase in the first half of 2026 compared to the previous year. However, Project Aurelian goes beyond just increasing delivery speeds, as it is designed to be a fallback plan in case contract negotiations with the Postal Service break down.
The cost of implementing Project Aurelian remains unclear, but Amazon's management has stated that most of its heavy spending is directed towards AI and AWS development. If the new delivery network does require significant investment, it could impact Amazon's cash flow and operating income in North America, where the plan would be implemented.