USPS and DHL Strike $10 Billion Deal for Last-Mile Delivery

The U.S. Postal Service and DHL have finalized a multi-year agreement expected to exceed $10 billion. In this collaboration, DHL handles pickups and sorting, with USPS covering last-mile delivery. This deal comes amid USPS's financial struggles, while offering DHL expansion in the U.S. market.

The U.S. Postal Service (USPS) announced on Thursday a multi-year agreement with DHL eCommerce, valued at over $10 billion, to manage last-mile parcel deliveries in the United States. The collaboration allows DHL eCommerce, a subsidiary of DHL Group, to grow within the U.S. market over the coming years.

Under the terms of the agreement, DHL eCommerce will oversee the pickup and sorting operations across 19 hubs in the U.S., with USPS completing the final leg of deliveries. This alliance is significant for USPS, which has faced financial hurdles, warning of potential cash shortages by February. In related news, USPS recently secured a renewed delivery agreement with Amazon.com.

Postmaster General David Steiner underscored the USPS's exclusive ability to reach 170 million U.S. households six days per week. He stated that this partnership provides DHL with a strategic advantage in the world's largest market. According to Scott Ashbaugh, CEO of DHL eCommerce Americas, the agreement supports their U.S. growth strategy and focus on heavier parcels. With plans to potentially double their business by 2030, DHL sees USPS as the optimal partner for efficient last-mile delivery.