THE United States Postal Service is leaning on its critical plan relating to its “last-mile” delivery services in order to help pull the federal agency out of financial troubles.
The Post Office is hoping that expanding this delivery network for major retailers and shippers will boost revenue – a move that comes as USPS says it could run out of cash as early as the start of 2027.
As USPS grapples with financial woes, the agency is pursuing new delivery revenue through its last-mile delivery, which is the crucial final step in the delivery process where mail and packages travel from local postal facilities such as destination delivery units (DDUs) to their final destination, like homes or businesses.
While this final leg is often the most complex and expensive part of the shipping process, the Post Office leads in this space thanks to its extensive, daily-visited network.
“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,” Postmaster General David Steiner said in a Wednesday news release.
While USPS has long partnered with giants such as Amazon, UPS, and FedEx to offer greater efficiency and significant cost savings for last-mile delivery, the federal agency announced that it will be opening its network to a broader range of shippers through competitive bidding.
