More on the Amazon/USPS deal

|By:, SA News Editor

The service  will first launch in the NYC and L.A. metro areas before eventually reaching "a large portion of the U.S. population in 2014  including Dallas, Houston, New Orleans and Phoenix." "Millions of items" are said to be covered. (PR)

The money-losing USPS is doubtlessly happy to see the extra business, which comes at the expense of traditional Amazon (AMZN) partner UPS.

Much like last month's hiking of Amazon's free shipping minimum for non-Prime customers to $35 from $25, the deal acts as yet another inducement for Amazon customers to upgrade to Prime. It also comes as Amazon gradually rolls out its AmazonFresh same-day delivery service.

Dan Rayburn has reported hearing from an Amazon insider the e-commerce giant ended Q3 with 15M+ Prime subs.

Previous: Amazon partners with USPS for Sunday delivery