USPS Secures $10 Billion Last-Mile Delivery Deal with DHL

The United States Postal Service (USPS) has announced a $10 billion agreement with DHL eCommerce to provide last-mile package delivery services. This collaboration marks a significant move as USPS expands its delivery network beyond existing partnerships with Amazon and UPS.

Last-mile delivery involves transporting a package from a local distribution center to the customer’s doorstep. It represents the most labor-intensive phase of the delivery process. According to Postmaster General David Steiner, USPS is optimally positioned for this task with deliveries to 170 million locations six days a week. Steiner stated, “We are the best last-mile provider by default. For us, this is a matter of meeting the customers where they are and meeting the customers’ needs.”

Although specific terms of the multi-year agreement have not been disclosed, USPS aims to expand its revenue under Steiner’s leadership. The postal service, with a history of over 250 years, faces financial challenges, and Steiner warned earlier this year about the potential cash shortfall within a year unless Congress allows increased borrowing limits.

Scott Ashbaugh, CEO of DHL eCommerce Americas, expressed optimism about the partnership. He commented, “Working with USPS allows us to serve communities nationwide in a highly efficient way, minimizing additional vehicles on the road and supporting our commitment to reducing emissions.” This collaboration is expected to support DHL eCommerce’s growth in the U.S. market.