USPS Strikes $10-B Deal with DHL to Expand Last-Mile Delivery Network

The United States Postal Service (USPS) has reached a $10 billion deal to provide “last-mile” delivery services for DHL eCommerce, an arm of German logistics company DHL, Mae Anderson reported for The Associated Press (AP).

US Postal Service trucks delivering packages as USPS expands last-mile logistics partnerships with DHL .(Photo: USPS Facebook)

The USPS said in December it intended to expand access to its delivery network for both large and small shippers, broadening beyond existing partnerships with companies such as Amazon and UPS.

Last-mile delivery refers to the final stage of transporting packages from a local distribution center to a customer’s doorstep, often the most labor-intensive part of logistics.

Postmaster General David Steiner said the USPS delivers to about 170 million locations six days a week, calling it “the best last-mile provider by default.”

He added that the agreement reflects the agency’s goal of meeting customer demand and expanding its revenue base.

The USPS and DHL described the deal as a multi-year agreement, though financial and operational details were not disclosed.