USPS Seeks Bidders to Expand Lastmile Delivery Network

Published: 01/30/2026
Last Mile Logistics Bidding USPS
USPS is opening its last-mile delivery network, allowing shippers to bid for access. This initiative aims to reduce costs, accelerate delivery times, and increase revenue. By leveraging existing infrastructure and enabling competitive bidding, USPS hopes to improve efficiency and provide more flexible options for shippers needing last-mile solutions. The program could potentially transform the landscape of last-mile delivery by introducing greater competition and innovation.
USPS Seeks Bidders to Expand Lastmile Delivery Network

Imagine if your products could reach customers faster and at lower costs—how would that transform your business? The United States Postal Service (USPS) is making a bold move to create precisely this opportunity by opening its vast last-mile delivery network to shippers of all sizes. This isn't just a policy adjustment; it's a potential revolution in logistics.

Key Changes Coming to USPS Operations

Through a competitive bidding process, USPS will grant access to its network of over 18,000 Destination Delivery Units (DDUs) starting in late January or early February next year. This strategic shift aims to:

  • Reduce shipping costs for businesses of all sizes
  • Enable same-day or next-day delivery capabilities
  • Better utilize USPS's existing last-mile infrastructure
"This could be a transformative move for American logistics," said Rob Martinez, founder of Shipware. "The opportunity to reduce last-mile costs while achieving faster delivery is very real."

Modernization Fuels New Strategy

USPS emphasizes that recent modernization investments have equipped it with sufficient package processing and delivery capacity to handle increased national shipping demand. These upgrades include:

  • Advanced sorting equipment installations
  • Optimized transportation routes
  • Enhanced package tracking technology

The postal service plans to formalize access through Negotiated Service Agreements (NSAs), with winning bidders notified in Q2 2024 and service commencing in Q3.

Industry Impact and Competitive Landscape

This move positions USPS in direct competition with UPS, FedEx, and regional last-mile providers. Industry experts note several potential outcomes:

  • Increased negotiation leverage for shippers
  • Potential downward pressure on delivery pricing
  • New options for retailers seeking faster fulfillment

Paul Yaussy of Loop's parcel contract intelligence team observes: "USPS is treating its last-mile access as a revenue-generating asset rather than just a universal service cost. The practical impact will depend entirely on execution."

Implementation Challenges

Several hurdles could affect the initiative's success:

  1. Bidding Complexity: The NSA process historically involves lengthy negotiations
  2. Operational Demands: Managing increased volume at DDUs may prove challenging
  3. Pricing Stability: Service level consistency remains uncertain

Adi Karamcheti of Shipware offers a contrasting view: "This seems like USPS trying to get more from Amazon or bring UPS back to the table. Playing chicken with Amazon might be high-risk."

Strategic Considerations for Shippers

Businesses evaluating this opportunity should:

  • Analyze DDU locations against their delivery networks
  • Assess volume requirements and service level needs
  • Prepare for potentially complex contract negotiations
  • Maintain alternative last-mile options

The initiative's ultimate success will depend on USPS's ability to balance competitive pricing with operational efficiency while meeting diverse shipper requirements. As the logistics landscape evolves, this development warrants close monitoring by all stakeholders in the shipping ecosystem.

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