Postal Service Opens Bidding Process for Last-Mile Delivery Access

The U.S. Postal Service (USPS) is now taking bids for access to its ​last‑mile delivery network.

The federal mail carrier service announced Tuesday (Jan. 20) that it had launched an online bidding website to accept proposals for entry to the delivery network. Upwards of 18,000 postal destination delivery units (DDUs) and local processing centers around the country are now open to a wider range of customers.

The announcement noted that the USPS has for years been selling delivery service direct from its DDUs, though typically to a limited number of very large customers. The new bidding platform opens this network to customers large and small who see the value and reach of the post office’s last-mile service.

“We recognize trends in the shipping marketplace — as well as changing market conditions, supply chain disruptions and the effects of a post-pandemic world — have driven our customers to prioritize convenience,” Postmaster General David Steiner said in a news release.

“To best accommodate the evolving needs of American commerce, and consumers, we are evolving our business strategies to better reflect the value in our last-mile delivery network.”

According to the release, customers will get the ability to suggest a combination of volume, pricing and tender times at each available DDU location for postal service delivery either the same day or the next day.

The USPS announced plans to begin bidding last month, and has since seen “a substantial increase in interest from many companies who wish to take advantage of the reliability and reach that only USPS can provide,” the release added.

The Postal Service said it engaged with shippers prior to today’s platform launch to gauge interest from businesses and to tweak the process to provide “the most effective bidding platform for its customers.”

The announcement follows a report last month that Amazon was considering expanding its own delivery network after discussions with USPS stalled and the Postal Service said it planned to hold an auction and sell access to its facilities to the highest bidder, which would leave Amazon competing with national retail brands and regional shipping companies.

“We were surprised to hear they want to run an auction after nearly a year of negotiations, so we still have a lot to work through,” a spokesperson for Amazon told PYMNTS at the time.

PYMNTS reported in December that USPS depends heavily on parcel delivery revenue to mitigate the sharp downturn in traditional letter mail.