Imagine a future where the United States Postal Service (USPS) opens its extensive last-mile delivery network to businesses of all sizes. This isn't just speculation—USPS is actively preparing a transformative initiative that could reshape America's parcel delivery landscape.
USPS's Last-Mile Ambition: A High-Stakes Open Bidding Process
USPS recently announced plans to open access to its nationwide network of over 18,000 Destination Delivery Units (DDUs) through a competitive bidding process. This groundbreaking move would allow shippers—from major retailers to small e-commerce businesses—to leverage USPS's vast infrastructure for faster, more cost-effective deliveries.
The bidding process is expected to launch in late January or early February next year. USPS plans extensive consultations with shippers to refine the bidding platform before its official debut, with additional details to be released in coming months.
"In logistics, last-mile delivery is typically the most expensive leg," said USPS Postmaster General and CEO David Steiner. "As part of our universal service obligation, we deliver to over 170 million addresses at least six days per week, making us the natural leader in last-mile delivery. We want to offer this valuable service to a broader customer base."
Steiner elaborated on the competitive bidding approach: "We're creating a fair process where the market can determine optimal local transportation attributes for volume-driven pricing. Since our carriers already visit every household daily, we can help shippers reduce costs while generating much-needed revenue for USPS."
Modernization Investments Fuel USPS Confidence
This ambitious plan builds on significant modernization investments that have enhanced USPS's package processing and delivery capabilities. The agency believes these upgrades position it to handle increased national shipping demand while maintaining service quality.
Implementation Timeline: Service Launch Expected in Q3 2024
USPS anticipates finalizing its Parcel Select bidding results through Negotiated Service Agreements (NSAs) by Q2 2024, with service commencing in Q3 for winning bidders.
Industry Reactions: A Spectrum of Perspectives
The announcement has generated mixed reactions from logistics experts:
Rob Martinez , founder of Shipware, sees potential for mutual benefit: "Shippers gain access to an established last-mile network covering every U.S. address, while USPS monetizes existing capacity. This could be transformative—reducing last-mile costs while enabling same-day or next-day delivery. If executed well, USPS could become the default national last-mile provider."
However, Martinez acknowledges uncertainties around pricing structures, service predictability, and operational complexity that could impact success.
Adi Karamcheti , another Shipware executive, offers a more skeptical view: "This seems aimed at extracting better terms from Amazon or reviving the UPS partnership. The claim of accessibility to all shippers seems questionable—you'd need substantial volume to justify direct network integration. Playing chicken with Amazon carries significant risk."
Paul Yaussy , Loop's Parcel Contract Intelligence lead, identifies a strategic shift: "USPS is monetizing its most expensive operational segment—a recognition of last-mile access as revenue-generating infrastructure rather than just a universal service cost."
Yaussy notes that practical adoption will depend on execution details: "Pricing structures, minimum volume requirements, and operational flexibility will determine whether this works beyond a few major shippers. While theoretically beneficial for retailers pursuing faster deliveries, adoption may be limited if pricing resembles traditional postal agreements."
Competitive Landscape: USPS's Uphill Battle
USPS faces formidable competition from Amazon, UPS, FedEx, and regional providers. Success will depend on leveraging its unique advantages—universal service obligations, nationwide coverage, and modernization investments—while overcoming operational and pricing challenges.
This bold last-mile initiative represents one of the most significant developments in U.S. parcel delivery in recent years. Its ultimate impact will become clearer as bidding details emerge and the first services launch in 2024.