In a strategic move to diversify its revenue streams and leverage its extensive network, the United States Postal Service (USPS) has announced a major expansion of its last-mile delivery services. The agency plans to open its final-leg delivery infrastructure to a wide range of shippers beyond its current partners like Amazon and UPS.
A New Revenue Model for the Historic Postal Service
Facing significant financial pressure, the USPS reported a net loss of $9 billion for the current budget year, a slight improvement from the previous year's $9.5 billion shortfall. Postmaster General and CEO David Steiner positioned this initiative as a way to capitalize on the agency's unique strengths. "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," Steiner stated. The goal is to transform this legal obligation into a profitable service for other companies.
How the New Last-Mile Plan Will Work
The postal service intends to accept bids from interested shippers in late January or early February of 2025. Companies will be able to propose their own terms based on volume, pricing, and delivery speed requirements. The USPS will then award contracts later in 2026, focusing on routes where it can provide same-day or next-day delivery profitably.
Under this new framework, shippers would gain access to over 18,000 delivery distribution units across the country. These facilities act as critical entry points where mail and packages are sorted for final delivery to local neighborhoods. Steiner described the offering as a "compelling value proposition for many shippers" who are struggling with the challenges of fast and reliable customer delivery.
Implications for the Logistics Industry and USPS Future
This decision marks a significant shift for the 250-year-old institution. By opening its last-mile network—the most expensive segment of the shipping process—to retailers and logistics firms of all sizes, the USPS aims to create a new, substantial revenue base. This strategy builds on recent investments in modernizing package processing and delivery capacity.
The agency, which operates as an independent and mostly self-supporting federal entity, is now actively gauging market interest and fine-tuning the operational details of the plan. The move is predicted to ultimately help lower delivery costs for participating shippers while providing the postal service with a much-needed financial boost.
