Imagine a nationwide postal network that doesn't just deliver mail but becomes the backbone for same-day and next-day e-commerce deliveries across America. The United States Postal Service (USPS) is working to turn this vision into reality. In a strategic move, USPS announced it will open its "last-mile" delivery network to shippers of all sizes, allowing them to bid for access to more than 18,000 Destination Delivery Units (DDUs) across the country. This initiative could fundamentally transform how retailers and logistics companies achieve rapid deliveries.
USPS's Strategic Blueprint: Opening DDUs to Compete in Last-Mile Delivery
The postal service plans to launch the bidding process in late January or early February, after consulting with shippers to gauge interest and refine procedures. More details will be released in coming months.
Postmaster General Louis DeJoy stated: "In logistics, the last mile is typically the most expensive part of delivery. As part of our universal service obligation, we deliver to over 170 million addresses at least six days a week, making us the natural leader in last-mile delivery. We want to offer this valuable service to customers of all sizes—including other logistics companies and retailers. We believe this represents a compelling value proposition for shippers striving to deliver to their customers as quickly and reliably as possible."
USPS emphasized that recent modernization investments have positioned it to handle a significantly larger share of national shipping demand. The organization looks forward to collaborating with customers to meet diverse shipping needs and volumes.
Bidding Process and Timeline: Parcel Select Under NSA Agreements
For the last-mile bidding initiative, USPS expects to formalize its Parcel Select product's direct-to-consumer capabilities through Negotiated Service Agreements (NSAs). Winning bidders will be notified in the second quarter of 2025, with services commencing in the third quarter.
Strategic Implications: Boosting Revenue and Accelerating Deliveries
By expanding DDU access beyond its traditional large clients, USPS aims to increase revenue, improve financial sustainability, and help retailers achieve same-day or next-day delivery through redesigned last-mile services.
Expert Perspectives: Opportunities and Challenges Ahead
Rob Martinez, founder of Shipware, observed: "On paper, this is win-win. Shippers gain access to an established last-mile network covering every U.S. address, while USPS monetizes existing capabilities. This could be transformative for American logistics. The opportunity to reduce last-mile costs and enable faster deliveries is very real."
Paul Yaussy, Parcel Contract Intelligence Lead at Loop, noted this marks a significant strategic shift for USPS: "With 18,000 DDUs and six-day weekly delivery to every address, USPS is treating last-mile access as a revenue generator rather than just a service obligation. However, success will depend entirely on execution—pricing structures, volume requirements, and operational flexibility will determine whether this works beyond just major shippers."
From a market perspective, Yaussy noted this positions USPS in more direct competition with UPS, FedEx, and regional last-mile providers, reflecting broader industry pressures to develop new revenue streams as parcel economics tighten.
Potential Impact and Challenges: Reshaping the Logistics Landscape
USPS's initiative could significantly disrupt American logistics. Successful implementation would provide retailers with more cost-effective last-mile solutions, accelerating deliveries and improving customer satisfaction. However, challenges include establishing fair bidding processes, maintaining service predictability, and managing operational complexity.
The postal service must also compete against established carriers like UPS and FedEx, plus emerging regional providers. Its ability to leverage network advantages while offering competitive pricing will determine whether this bold strategic move succeeds in reshaping America's delivery ecosystem.