USPS secures $10B deal for last-mile delivery with DHL eCommerce
AP News • • business
Key Points:
- The United States Postal Service (USPS) announced a $10 billion multi-year deal to provide last-mile package delivery services for DHL eCommerce, a division of the German logistics company DHL.
- This agreement expands USPS's last-mile delivery network beyond existing partnerships with Amazon and UPS, leveraging its reach to 170 million delivery points six days a week.
- Last-mile delivery, the final and most labor-intensive step of the shipping process, is a key focus for USPS as it seeks to meet customer demands and increase revenue under Postmaster General David Steiner.
- The deal supports DHL eCommerce's growth in the U.S. and aligns with efforts to reduce delivery-related emissions by minimizing additional vehicles on the road.
- USPS faces financial challenges, with Steiner warning that the agency could run out of cash within a year unless Congress raises borrowing limits.