USPS and DHL eCommerce Align for $10 Billion Last-Mile Delivery Agreement

The United States Postal Service (USPS) has announced a substantial $10 billion agreement to perform last-mile delivery services for DHL eCommerce, a division of the German logistics giant DHL. This collaboration expands USPS’s last-mile delivery offerings, which previously included partnerships with major entities like Amazon and UPS.

Last-mile delivery involves transporting packages from a local distribution hub directly to a customer’s doorstep. This phase is often the most complex and labor-intensive aspect of the logistics process.

David Steiner, the Postmaster General, emphasized USPS’s robust infrastructure during a discussion with journalists. He noted that with USPS delivering to 170 million locations six days each week, they are naturally positioned as the top choice for last-mile delivery. Steiner commented, “For us, this is about addressing customer needs efficiently.”

The USPS and DHL clarified that the agreement is intended as a long-term cooperation, although further specific details were not disclosed. Under Steiner’s leadership, USPS aims to enhance its financial standing by broadening its revenue streams. In a recent interview, Steiner indicated potential monetary constraints, suggesting that USPS might face a liquidity challenge within a year if Congress does not amend borrowing limitations imposed decades ago.

Scott Ashbaugh, CEO of DHL eCommerce Americas, expressed optimism about the collaboration. He highlighted that partnering with USPS offers a streamlined approach for reaching communities nationwide, curbing the need for additional vehicles, and aligning with efforts to lower emissions.