The United States Postal Service said on may 28th it reached a $10 billion deal to provide “last-mile” package delivery services for DHL eCommerce, an arm of German package services provider DHL.
The USPS said in December it intended to open its last-mile delivery network to large and small shippers, expanding beyond current arrangements with Amazon and UPS.
Last-mile delivery refers to the final step of getting a package from a local distribution center to a customer’s door, the most labor-intensive part of the delivery process.
Postmaster General David Steiner said in a call with reporters that since the USPS delivers to 170 million locations six days a week, “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.
The USPS and DHL said the agreement is a multi-year commitment, but did not elaborate.
Under Steiner, the USPS has been trying to expand the 250-year-old postal service’s revenue base. In March, Steiner told The Associated Press that the USPS could run out of cash within a year, unless Congress lifts a decades-old cap and allows the agency to borrow more money.
Editors note: It is unclear if screening will still be done by DHL or if USPS will also take on this role in their sorting offices.
