The U.S. Postal Service is preparing to open its vast last-mile delivery infrastructure to a broader range of shippers through a competitive bidding process launching in early 2026, marking a significant shift in the agency's approach to leveraging its extensive delivery network for revenue generation.
Starting in late January or early February 2026, logistics companies and retailers will be able to submit bids for direct access to USPS's delivery destination units (DDUs), the final stops in the postal network before packages reach customers. Successful bidders will gain access to same-day or next-day delivery services through the agency's network of more than 18,000 DDUs nationwide.
Breaking Down Traditional Barriers
The initiative represents a departure from USPS's historically restrictive DDU access policies, which have typically limited direct facility entry to high-volume shippers and package consolidators. These select partners have long used DDU injection to bypass potential upstream bottlenecks while capitalizing on USPS's comprehensive last-mile coverage capabilities.
Under the new system, shippers can "propose a combination of volume, pricing and tender times at each location," according to USPS. The agency expects to notify winning bidders in Q2 2026, with services commencing in Q3 2026. This competitive approach aims to democratize access to USPS's last-mile infrastructure, enabling both large logistics providers and smaller retailers to leverage the postal service's delivery capabilities.
Strategic Reversal Under New Leadership
The bid solicitation process signals a strategic reversal from policies implemented under former Postmaster General Louis DeJoy, who disrupted longstanding consolidator partnerships by eliminating contracted rate discounts that incentivized DDU injection. DeJoy's approach reduced third-party access to USPS facilities as part of broader operational restructuring efforts.
Current Postmaster General and CEO David Steiner has actively sought to reverse course, engaging with major logistics providers including UPS and various retailers to expand utilization of USPS's last-mile assets. "We want to make this valuable service available to a wide range of customers that see the worth of last mile access — other logistics companies and retailers large and small," Steiner stated.
Revenue Generation Focus
The initiative addresses USPS's ongoing financial challenges by creating new revenue streams from its extensive delivery infrastructure. Steiner emphasized that the bid solicitation process will enable companies "to find the best mix of local shipping attributes for the best volume-driven pricing" while generating additional income for the financially struggling agency.
The postal service plans to maintain existing non-DDU entry points throughout its network to continue serving current customers, ensuring the new bidding system complements rather than replaces existing services. Before launching the formal bidding platform, USPS will conduct market research to gauge shipper interest and refine the process based on industry feedback.
Industry Implications
This development positions USPS as a more accessible third-party logistics provider, potentially creating new competitive dynamics in the last-mile delivery market. By opening its DDU network through competitive bidding, USPS could attract volume from shippers seeking cost-effective same-day and next-day delivery options without requiring the scale traditionally necessary for direct postal service partnerships.
The timing aligns with growing demand for expedited delivery services, particularly in e-commerce fulfillment, where last-mile delivery represents a critical competitive advantage. For logistics companies and retailers, DDU access could provide geographic coverage expansion opportunities and operational flexibility in meeting customer delivery expectations.
As USPS prepares to launch this initiative, the logistics industry will be watching closely to see how pricing structures develop and whether the program successfully balances accessibility for smaller shippers with revenue generation for the postal service.
📰 Source: This article is based on content from Supply Chain Dive.
Additional research from 3 sources consulted for context and accuracy.
