A new US Postal Service initiative could shake up the last-mile delivery market.
The agency announced it will open its network to a broader range of shippers in a move expected to intensify competition in the logistics sector. Starting early next year, retailers and logistics firms of all sizes will be able to submit bids for access to more than 18,000 delivery destination units (DDUs) nationwide, potentially challenging traditional courier services and e-commerce delivery providers by leveraging USPS’s reach to 170 million addresses.
While USPS already partners with major carriers such as Amazon and UPS for last-mile deliveries, the new bid solicitation will open its network to a wider variety of shippers, including smaller retailers and logistics firms.
In the logistics business, the most expensive part of delivery is generally the last mile portion of a route, noted Postmaster General and CEO David Steiner.
"We see this initiative as a compelling value proposition for many shippers who we know are wrestling with the need to deliver to their customer as quickly and reliably as possible,” said Steiner.
“Because our delivery operations are already visiting every home and business daily, we can help shippers reduce their costs while generating much-needed revenue for the Postal Service."
The Postal Service, which generally receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations, hopes the move will help make it a more financially viable institution.
The agency will award contracts later in 2026 based on where it can provide same and next-day delivery service at a surplus.
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