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USPS Signs Multiyear Deal to Solidify DHL Ties
Postal Service to Carry Out Last-Mile E-Commerce Deliveries to Customers for DHL
Key Takeaways:
- The multiyear DHL deal is expected to generate at least $10 billion, providing a critical new revenue stream as the Postal Service works to stabilize its finances.
- USPS will handle final delivery to homes, leveraging its nationwide network while DHL manages pickup, sorting and linehaul operations.
- The partnership supports DHL’s U.S. e-commerce expansion — aiming to scale volume through 2030.
The United States Postal Service and the e-commerce arm of global courier DHL signed a multiyear parcel delivery contract, a renewed commitment expected to bring in at least $10 billion in revenue for the mail carrier.
USPS will carry out last-mile e-commerce deliveries directly to customer homes for DHL under the agreement, the companies said in a statement May 28.
The deal secures a key source of business for USPS as it works to repair its tattered finances after years of consistent losses. The agency has struggled to cover its immense operating costs and obligations amid declining mail volumes.
Postmaster General David Steiner said the arrangement is expected to be worth at least $10 billion for the postal service.
“We fully expect that there’ll be much more than that over the term of the contract,” he said during a briefing with reporters.
While DHL’s e-commerce unit and USPS have worked together for about 25 years, the new agreement marks their first multiyear contract, said Scott Ashbaugh, CEO of DHL eCommerce Americas.
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DHL’s e-commerce unit and USPS have worked together for about 25 years. (Krisztian Bocsi/Bloomberg News)
“We’re going to double our business by 2030 and we need the best last-mile solution to do it,” Ashbaugh said. “We’re here today as evidence that the USPS last-mile is, without question, the most powerful in the United States.”
DHL and USPS have not specified the length of the contract.
USPS ranks No. 4 on the Transport Topics Top 50 list of the largest global freight companies.
DHL Supply Chain ranks No. 12 on the Transport Topics Top 100 list of the largest logistics companies in North America and No. 5 on the TT Top 50 Global Freight list.
