The United States Postal Service (USPS) announced a significant agreement on Thursday. They have forged a $10 billion partnership to provide last-mile package delivery services for DHL eCommerce, a division of the German package service provider, DHL.
In December, the USPS revealed its plans to expand its last-mile delivery network. This expansion includes large and small shippers, beside existing collaborations with Amazon and UPS. Last-mile delivery is crucial as it involves the final leg of the journey from a local distribution center to the customer’s doorstep, requiring considerable labor.
Postmaster General David Steiner emphasized the USPS’s strength in this area, stating, “We are the best last-mile provider by default.” With deliveries to 170 million locations six days a week, the USPS aims to meet customer needs effectively.
The USPS and DHL described their collaboration as a multi-year commitment, although specific terms were not disclosed. Under Steiner’s leadership, there is a drive to broaden the postal service’s revenue base, which spans 250 years. In March, Steiner mentioned to The Associated Press that without Congress lifting an old borrowing cap, the USPS could face cash shortages within a year.
Scott Ashbaugh, CEO of DHL eCommerce Americas, highlighted the efficiency gains from this partnership. “Working with USPS allows us to serve communities nationwide while reducing the number of additional vehicles on the road and supporting our goal to lower emissions,” he explained.