USPS Expands Lastmile Delivery to Outside Bidders

Published: 01/21/2026
Last Mile USPS Logistics Strategy
USPS plans to open its last-mile delivery network, offering access to over 18,000 DDUs to more shippers through a bidding process. This initiative aims to boost revenue, improve financial sustainability, and enable retailers to achieve same-day or next-day delivery. Experts believe this move could reshape the US logistics landscape, but its success hinges on effective execution. The strategy represents a significant shift for USPS and could have a wide-ranging impact on e-commerce and supply chain operations.
USPS Expands Lastmile Delivery to Outside Bidders

The United States Postal Service (USPS) is embarking on a transformative strategy to leverage its nationwide delivery network beyond traditional mail services. The agency plans to open its last-mile delivery infrastructure to a broader range of commercial clients through a competitive bidding process, potentially reshaping the American logistics landscape.

Bidding Model for Last-Mile Access

USPS announced it will make its network of over 18,000 Destination Delivery Units (DDUs) available to shippers of various sizes through a bidding process. The formal solicitation is expected to launch in late January or early February 2025, with USPS currently engaging potential participants to refine the platform and ensure a fair, efficient process.

"Last-mile delivery is typically the most expensive part of logistics. As part of our universal service obligation, we deliver to over 170 million addresses at least six days per week, giving us inherent advantages in last-mile delivery," said Postmaster General Louis DeJoy. "We want to make this valuable service available to more customers who recognize the value of last-mile access."

Infrastructure Readiness

USPS emphasized that recent modernization investments have significantly enhanced its parcel processing and delivery capabilities, positioning the agency to handle increased shipping volumes. The service expects to formalize its expanded Parcel Select offerings through Negotiated Service Agreements (NSAs), with winning bidders notified in Q2 2025 and service commencing in Q3.

Strategic Implications

The initiative aims to create multiple benefits: generating new revenue streams for USPS, improving financial sustainability, and helping retailers achieve faster delivery times. By extending DDU access beyond major carriers to smaller shippers, USPS could become a default last-mile provider for e-commerce businesses seeking cost-effective same-day or next-day delivery solutions.

Industry Perspectives

Rob Martinez, founder of Shipware, noted: "Theoretically, this is win-win. Shippers gain access to an established last-mile network covering every U.S. address, while USPS obtains meaningful new revenue by better utilizing existing capacity. This could be transformative for American logistics."

However, industry analysts highlight potential challenges. Adi Karamcheti, Shipware consultant, questioned whether smaller shippers could realistically participate: "You need substantial volume to inject directly into the postal network. This seems more like USPS trying to gain leverage with Amazon or UPS."

Paul Yaussy of Loop Capital observed the move represents a significant strategic shift: "USPS is attempting to monetize the most expensive and operationally complex part of delivery. Their universal service footprint gives them unique advantages, but success depends entirely on execution—pricing structures, volume requirements, and operational flexibility will determine adoption."

The initiative could intensify competition with UPS, FedEx, and regional last-mile providers, reflecting broader industry efforts to find new revenue streams amid tightening parcel economics. While promising in concept, experts caution that historical challenges in negotiating USPS service agreements may affect implementation.

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