The U.S. postal service has secured a major new logistics partnership, signing a $10 billion agreement to provide package delivery services for DHL eCommerce in the United States, according to AP News.
The multi-year deal will see the United States Postal Service handle “last-mile” deliveries for DHL eCommerce, the final stage of the shipping process that brings packages from local distribution centers to customers’ homes.
USPS Expands Its Delivery Network Business
The agreement follows the postal service’s recent push to make its nationwide delivery network available to more commercial shipping partners.
Last-mile delivery is often considered the most expensive and labor-intensive part of the logistics chain. USPS already performs similar services for major carriers and retailers, including Amazon and UPS, and has been seeking additional partnerships to generate revenue.
With delivery routes reaching roughly 170 million addresses six days a week, USPS is positioning its existing network as an asset that can support growing e-commerce demand without requiring significant new infrastructure.
Financial Pressures Drive New Growth Strategy
The deal comes as USPS continues efforts to strengthen its finances.
Postal officials have previously warned that the agency faces ongoing financial challenges and could require additional borrowing authority from Congress to maintain operations over the long term.
Expanding commercial delivery partnerships has become a key part of the organization’s strategy to diversify revenue beyond traditional mail services.
DHL Looks to Expand U.S. Reach
For DHL eCommerce, the agreement provides broader access to residential delivery across the country through USPS’s existing network.
The companies said the partnership is expected to improve delivery efficiency while reducing the need for additional delivery vehicles on the road.
Financial terms beyond the reported $10 billion value and the length of the agreement were not disclosed.
