The United States Postal Service (USPS) is an American legacy that is over 250 years old. Now, on the heels of its creation of a postal banking pilot program, it’s on another effort to diversify its services and increase revenue by expanding its last-mile delivery network. The postal service is required by law to deliver to each and every address in the country. In late January or early February of next year, they expect to put out bids for other shippers. This smart strategic move makes a clear, direct response to major recurring net losses. The USPS recently announced a shocking $9 billion shortfall this fiscal year, on the heels of a $9.5 billion loss last year.
To meet these financial uncertainties, the USPS has made significant investments to ramp up its processing and delivery capacity for packages. David Steiner, postmaster general and CEO of USPS, underscored the importance of this program. It’ll prove valuable not only to your own organization but to prospective partners as well. The USPS can start providing same- and next-day delivery services, which would expand service for customers and could be profitable.
With more than 18,000 delivery distribution units nationwide, the USPS is uniquely poised to support extensive, efficient delivery operations. These units are integral to the USPS network. They process and prepare mail and packages for local delivery. As Steiner pointed out, this pilot project will offer other companies critical logistical support and capacity. In doing so, it will save the USPS money.
“As part of our universal service obligation, we deliver to more than 170 million addresses at least six days a week, so we are the natural leader in last-mile delivery,” – David Steiner
By opening its last-mile access to other logistics companies and retailers, the USPS aims to create what Steiner describes as a “compelling value proposition for many shippers who we know are wrestling with the need to deliver to their customer as quickly and reliably as possible.” This approach highlights the USPS’s commitment to leveraging its extensive network to benefit both itself and its partners in the logistics industry.
Contracts for the new last-mile delivery initiative will be awarded in 2026. This is a big win for the USPS as it continues to push the envelope on being innovative while operating under continued financial duress. The expansion of services is not just about increasing revenue. It is about ensuring that the USPS continues to fulfill its mission of delivering mail and packages reliably across the nation.
