What's Happening?
The U.S. Postal Service (USPS) plans to open its last-mile delivery network to a broader range of shippers through a new bidding process starting in early 2026. This initiative aims to increase revenue
and reduce reliance on large customers like Amazon and UPS. The USPS has faced significant financial losses, reporting $9 billion in net losses in 2025. Postmaster General David Steiner, appointed in May, is spearheading efforts to expand the Postal Service's delivery assets. The new bidding process will allow smaller companies to access USPS's delivery network, potentially increasing the organization's revenue and financial viability.
Why It's Important?
The USPS's decision to open its last-mile delivery network to more customers is a strategic move to diversify its revenue streams and mitigate financial losses. By reducing dependency on major clients like Amazon, the USPS aims to stabilize its financial position and enhance its service offerings. This move could also foster competition in the logistics sector, providing smaller businesses with access to USPS's extensive delivery network. The initiative reflects a broader trend of modernization and adaptation within the USPS, which is crucial for its long-term sustainability and ability to meet evolving market demands.
What's Next?
The USPS will begin the bidding process in early 2026, with service expected to commence in the third quarter of the year. The organization plans to notify successful bidders by the second quarter. This timeline suggests a rapid implementation of the new strategy, which could significantly alter the competitive landscape of last-mile delivery services. Stakeholders, including logistics companies and retailers, will likely monitor the process closely to assess potential opportunities and challenges. The USPS's ability to attract a diverse range of bidders will be critical to the success of this initiative.
