Amazon’s negotiations with the US Postal Service became so strained last year that the company started preparing for a future without one of its most important delivery partners.
The internal contingency plan, called Project Aurelian, explored how Amazon could continue serving customers if a new USPS contract fell apart, according to an official planning document reviewed by Business Insider and people familiar with the project.
Amazon and USPS ultimately reached a deal in April. But the planning exercise has reshaped Amazon’s future delivery strategy.
The e-commerce giant now aims to expand its network to about 39,400 US ZIP codes by 2029, about 95% of total ZIP codes and enough to cover 99.9% of US customer demand, the document shows. Under this new “dual coverage” approach, Amazon wants every
addressable ZIP code served by both its own delivery network and at least one third-party carrier, giving it two ways to reach customers.
It’s Amazon’s most ambitious effort yet to reach customers through its own delivery network in nearly every corner of the country. This protects the company if delivery partners change their plans, and gives it more leverage in future negotiations.
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