The United States Postal Service (USPS) has announced a significant partnership with DHL eCommerce, part of the German package services provider DHL. This $10 billion agreement focuses on last-mile package delivery services.
In December, the USPS revealed plans to extend its last-mile delivery network to accommodate more large and small shippers. This move builds upon existing collaborations with companies like Amazon and UPS. Last-mile delivery is the crucial final step of delivering a package from a local distribution center to the customer’s doorstep, often considered the most labor-intensive phase of delivery.
Postmaster General David Steiner emphasized that the USPS delivers to 170 million locations six days a week, positioning it as a top provider for last-mile delivery. “For us, this is a matter of meeting the customers where they are and meeting the customers’ needs,” Steiner stated during a call with reporters.
“We are the best last-mile provider by default,” Steiner asserted.
While both USPS and DHL confirmed that the agreement is a multi-year commitment, they did not provide further details. This deal aligns with Steiner’s strategy to widen the USPS’s revenue sources. March estimates indicated the USPS faced a risk of running out of cash within a year unless Congress increased a borrowing cap imposed decades ago.
Scott Ashbaugh, CEO of DHL eCommerce Americas, expressed optimism about the partnership, indicating that it would bolster DHL eCommerce’s growth in the US.
“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 commented.
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