Last-Mile Delivery May Get More Competitive As USPS Broadens Access

The U.S. Postal Service is preparing to make a significant move that could reshape the last-mile delivery landscape. Under a newly announced initiative, USPS plans to open its vast delivery network to a wider pool of shippers, a shift that is expected to heighten competition across the logistics industry.

Beginning early next year, retailers and logistics companies of all sizes will be invited to bid for access to more than 18,000 delivery destination units (DDUs) across the country. With daily reach to roughly 170 million residential and business addresses, USPS’s infrastructure could offer a compelling alternative to traditional courier services and e-commerce delivery providers.

Although the Postal Service already handles last-mile deliveries for major players such as Amazon and UPS, this new solicitation expands access beyond large carriers. Smaller retailers and logistics firms will also have an opportunity to tap into the network, potentially leveling the playing field in a sector where delivery speed and cost efficiency are critical.

Postmaster General and CEO David Steiner emphasized that the final leg of delivery is typically the most expensive part of the logistics chain. By leveraging routes that already serve every home and business each day, USPS believes it can help shippers lower costs while maintaining reliable, fast delivery.

At the same time, the initiative is designed to generate new revenue for the Postal Service, which operates without regular taxpayer funding and relies on sales of postage, products, and services to support its operations. Contracts are expected to be awarded later in 2026, focusing on markets where USPS can provide same-day or next-day delivery while still operating at a surplus.

Source: GlobeSt.