The U.S. Postal Service (USPS) is opening a bidding process for retailers, brands and logistics companies to gain access to its last-mile delivery network, offering them same-day or next-day delivery.
After Postmaster General David Steiner floated the idea as a way to grow revenue at the struggling government agency last month, the courier unveiled Wednesday it would begin accepting bids to take part in its network early next year.
Last-mile partners will be able to have access to more than 18,000 USPS “delivery destination units” nationwide. These facilities are the last stop before mail gets delivered to homes and businesses.
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The solicitation process will start in late January or early February 2026.
Shippers seeking access to the USPS network can propose a combination of volume, pricing and tender times at each location. Successful bidders will be able to choose whether USPS deliveries can be made same-day or next-day.
The organization expects to notify winning bidders in the second quarter, with service beginning in the third quarter.
“In the logistics business, the most expensive part of delivery is generally the ‘last mile’ portion of a route,” said Steiner in a statement. “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. We want to make this valuable service available to a wide range of customers that see the worth of last mile access—other logistics companies and retailers large and small.”
In 2024, under previous Postmaster General Louis DeJoy, the USPS had amended agreements with bulk shippers for its low-cost delivery service Parcel Select. This move was designed to move more parcels into the network earlier in the delivery process at sorting and delivery centers, where the Postal Service could charge higher rates.
Due to the increased costs, that move prompted UPS to let its contract with USPS expire in January, ending their low-cost, lightweight SurePost program. Under that program, UPS handed off millions of packages to USPS for last-mile delivery.
UPS later revived the low-urgency program as UPS Ground Saver using its own delivery network, before making up with USPS during the agency’s leadership transition. The two parties reached a preliminary agreement on volume and shipping rates in October, UPS CEO Carol Tomé said during an earnings call.
Tomé said details about the USPS partnership will be available by the end of the fourth quarter.
As for Postal Service’s last-mile solicitations, the national courier says it will provide more details about the program in the coming months.
USPS says it will engage shippers to discuss the procedure, gauge interest in participation and fine-tune the bidding process based on feedback. According to Steiner, the delivery service wants to allow shipper partners to “custom-build” their last-mile solution.
“We see this initiative 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,” Steiner said. “Our solution is to establish a fair bidding process that enables the marketplace to find the best mix of local shipping attributes for the best volume-driven pricing. Because our delivery operations are already visiting every home and business daily, we can help shippers reduce their costs while generating much-needed revenue for the Postal Service.”
The move also occurs as the Postal Service’s contract with Amazon is up for expiration next October.
The two delivery giants have reportedly been unable to come to terms on a new deal, said the Washington Post, namely due to USPS opening the last-mile floodgates to other businesses. This would effectively put Amazon in direct competition with other retailers for USPS shipping access.
Amazon generated a reported $6 billion in annual revenue for the agency in its 2025 fiscal year. This would account for approximately 7.5 percent of total USPS operating revenue for the year.
USPS acknowledged in its statement that it has been selling delivery service direct from its downstream locations for years, but that it has “generally been for a limited number of very large customers” like UPS and Amazon.
The agency says it is “extremely confident” that revenue will increase through this process and “make USPS a more financially viable institution.”
Revenue growth, rather than cost cuts, is the top priority of the USPS under Steiner as he seeks to turn around an entity that has incurred billions in losses in recent years.
The Postal Service saw net losses of $9 billion in its 2025 fiscal year, compounding $9.5 billion in incurred losses in 2024. Total revenue this year grew just 1.2 percent to $80.5 billion.
