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USPS to Open Last-Mile Delivery Network to More Shippers
Plan Would Expand Postal Service's Current Arrangements With Giants Like Amazon and UPS
Key Takeaways:
- The U.S. Postal Service plans to open its last-mile delivery network to more shippers, seeking bids in early 2026 to expand beyond existing deals with Amazon and UPS.
- Officials say the move aims to boost revenue by leveraging delivery to more than 170 million addresses and access to 18,000 local distribution units.
- Contracts would be awarded later in 2026 for same- and next-day delivery where USPS can operate profitably, as the agency works to narrow annual losses.
The U.S. Postal Service said Dec. 17 it intends to open its last-mile delivery network, the most expensive part of the shipping process, to large and small shippers, expanding beyond current arrangements with giants such as Amazon and UPS.
The goal is to diversify and boost revenue through the postal carriers' final leg of delivery to millions of individual homes and businesses.
The postal service expects to accept bids in late January or early February from other shippers, which will propose their own mix of volume, price and delivery timing. The agency will award contracts later in 2026, based on where it can provide same- and next-day delivery service at a profit.
“As part of our universal service obligation, we deliver to more than 170 million addresses at least six days a week, so we are the natural leader in last-mile delivery,” said David Steiner, the postmaster general and CEO. “We want to make this valuable service available to a wide range of customers that see the worth of last-mile access — other logistics companies and retailers large and small.”
Steiner has said the 250-year-old postal service should expand its revenue base by capitalizing on its long-standing legal obligation to deliver to every address as well as recent modernization investments in package processing and delivery capacity.
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Postmaster General David Steiner speaks at an event marking the 250th anniversary of USPS' founding on July 23 in Washington. (Cliff Owen/Associated Press, File)
USPS ranks No. 4 on the Transport Topics Top 50 list of the largest global freight companies.
UPS ranks No. 1 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. UPS Supply Chain Solutions is No. 5 on the TT Top 100 list of the largest logistics companies. The company also ranks No. 2 on the TT Top 50 list of the largest global freight carriers.
Amazon ranks No. 1 on both the logistics TT100 and global freight TT50 and No. 15 on the TT Top 100 private carriers list.
USPS reported net losses of $9 billion this budget year, a slight improvement from the previous year's $9.5 billion. The postal service is an independent and mostly self-supporting federal agency.
Under the new plan, shippers would have access to more than 18,000 postal service “delivery distribution units,” entry points throughout the network where mail and packages are sorted for delivery to a local area.
Steiner called the concept 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," predicting it will ultimately help lower their costs.
The postal service said it still plans to gauge interest in the concept and fine-tune the details.
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