USPS Wants Retailers to Compete for Last-Mile Delivery (and What it Means)
The U.S. Postal Service is widening access to its last-mile delivery network by inviting more retailers and logistics providers to bid for capacity, a shift designed to generate meaningful new revenue.
Championed by Postmaster General Steiner, the approach reflects mounting pressure to stabilize USPS finances amid ongoing multi-billion-dollar losses and projections that cash reserves could be exhausted by 2027.
While the strategy taps into USPS’s unmatched delivery reach, many are questioning whether the economics will make sense beyond large, high-density shippers, particularly given the agency’s pivot away from its earlier end-to-end service focus.
Key things to consider:
- Not all networks will benefit equally: Direct access to DDUs favors shippers with dense volume and predictable delivery patterns at the local level.
- Last-mile savings depend on upstream costs: Any pricing advantage must be weighed against first-mile transportation, sortation requirements, and operational complexity.
- Service customization adds variability: Bids will vary by location, volume, and tender timing, meaning performance and cost outcomes won’t be uniform across a network.
- Carrier strategy is becoming more fluid: As USPS expands last-mile access, shippers should expect continued shifts in how private carriers structure economy and deferred services.
- Data-driven modeling is essential: Evaluating USPS last-mile options alongside private carriers requires accurate visibility into cost, service levels, and delivery performance.
The bottom line
USPS’s expanded last-mile offering could create new opportunities, but only for shippers who understand their network economics at a granular level. As parcel strategies evolve, disciplined modeling and ongoing performance analysis will be critical to separating real savings from added complexity.
