USPS introduces a bidding platform for last-mile delivery, aiming to boost revenue amid changing market demands, as reported by FreightWaves.
The US Postal Service has launched a platform allowing retailers and logistics providers to bid for last-mile delivery services, part of Postmaster General David Steiner's strategy to raise revenue, reported New York's FreightWaves.
The Postal Service has long offered delivery direct from post offices, mainly to large customers. The new system opens access to e-commerce shippers of all sizes willing to pay a premium for fast front-door delivery. Mr. Steiner said evolving strategies reflect changing market conditions and customer demand for convenience.
The agency expects billions of dollars in new revenue to help offset a US$2.8 billion operating loss in the last fiscal year. Shippers can reserve capacity at more than 170 processing units and 18,000 post offices nationwide, proposing combinations of volume, pricing, and tender times for same-day or next-day delivery.
Analysts said higher prices could prompt Amazon to reduce its use of USPS. The agency noted strong interest since announcing the plan in December, with companies keen to leverage its universal delivery footprint. Amazon and UPS have relied on USPS for costly rural and less dense routes.
Accepted bids will be formalized through negotiated service agreements under the Parcel Select product. Winning bidders will be notified in the second quarter, with service beginning in the third quarter of 2026.
Mr. Steiner said USPS last-mile delivery offers speed and reliability nationwide, providing a competitive advantage. However, some analysts questioned whether most retailers have sufficient volumes and logistics capacity to drop-ship deep into the postal network.
ShipMatrix president Satish Jindel argued USPS should focus entirely on last-mile delivery and stop accepting packages at regional distribution centers to maximize revenue potential. He warned the strategy could undercut existing parcel products such as Ground Advantage and Priority Mail.
