USPS invites retailers to secure last-mile delivery slots

USPS Launches Bidding Platform for Last-Mile Delivery Services

The United States Postal Service has introduced a new online portal, allowing retailers and logistics companies to submit bids for last-mile delivery services to both residential and commercial addresses. This initiative is part of Postmaster General David Steiner’s broader plan to boost revenue for the agency, which has been operating at a loss.

Historically, the Postal Service has offered direct delivery from post offices, but this service was primarily available to large-scale clients capable of delivering bulk shipments to local or regional facilities. Previously, the agency encouraged shippers to drop off parcels at upstream distribution centers for more efficient sorting. Now, with input from industry partners, the newly launched bidding platform opens up last-mile delivery to e-commerce businesses of all sizes, provided they are willing to pay for expedited doorstep delivery.

“We are adapting to shifts in the shipping industry, evolving market dynamics, supply chain challenges, and the realities of a post-pandemic world, all of which have led our customers to seek greater convenience. To better serve the changing needs of American businesses and consumers, we are updating our strategies to highlight the value of our last-mile delivery network,” Steiner stated in a press release.

The Postal Service anticipates that expanding last-mile delivery will generate billions in new revenue, helping to offset the $2.8 billion operating deficit recorded in the last fiscal year ending September 30. The new system enables shippers to secure space at over 170 processing centers and 18,000 post offices nationwide.

According to the solicitation, customers can submit proposals that combine shipment volume, pricing, and delivery schedules for each available destination unit, offering options for same-day or next-day delivery. This approach aims to ensure that last-mile services are priced appropriately based on supply and demand. The potential for increased rates has led to speculation that Amazon might scale back its use of USPS for last-mile deliveries.

On December 17, the Postal Service announced its intention to let e-commerce companies compete for access to its last-mile network. Since then, interest from businesses eager to leverage the USPS’s extensive delivery reach has surged, according to the agency.

USPS plans to finalize successful bids for its Parcel Select service through negotiated service agreements (NSAs). These contracts provide tailored pricing for mailers who meet specific volume and preparation criteria.

Implementation Timeline and Industry Reactions

Successful bidders will be notified in the second quarter, with services under the new NSAs set to begin in the third quarter of 2026, according to USPS.

“Our last-mile delivery network offers rapid and dependable service across the country, giving our customers a significant competitive edge. We aim to deliver this advantage through solutions tailored to consumer needs,” Steiner added.

However, some industry experts question whether most retailers possess the necessary shipment volumes and logistics infrastructure to deliver parcels deep into the USPS network.

Satish Jindel, president of ShipMatrix Inc. and a veteran in the parcel sector, recently argued that by providing last-mile delivery, USPS could undermine its own Ground Advantage and Priority Mail products and inadvertently benefit competitors. He suggested that the agency should focus exclusively on last-mile services and stop accepting packages at regional distribution centers to maximize revenue.