The U.S. Postal Service announced Thursday it has secured a massive $10 billion partnership with DHL eCommerce, the online division of the German shipping giant, to handle final package deliveries to customers.
Back in December, the postal service revealed plans to open its final delivery network to both major and smaller shipping companies, building on existing partnerships it maintains with Amazon and UPS.
The final delivery phase involves transporting packages from nearby distribution facilities directly to customers’ homes, representing the most demanding and labor-heavy portion of the shipping process.
During a media briefing, Postmaster General David Steiner emphasized the postal service’s unique position, noting that with deliveries to 170 million addresses six days weekly, “we are the best last-mile provider by default.”
“For us, this is a matter of meeting the customers where they are and meeting the customers’ needs,” he said.
Both organizations confirmed the partnership spans multiple years but declined to provide additional specifics about the timeline.
Steiner has been working to diversify revenue streams for the postal service, which has operated for 250 years. Earlier this year in March, he warned The Associated Press that without congressional action to remove longstanding borrowing restrictions, the agency could face a cash shortage within twelve months.
Scott Ashbaugh, CEO of DHL eCommerce Americas, explained the partnership will boost DHL eCommerce’s expansion efforts across the United States.
“Working with USPS allows us to serve communities nationwide in a highly efficient way, minimizing additional vehicles on the road and supporting our commitment to reducing emissions,” he said.
