DHL eCommerce signs $10B last-mile delivery deal with USPS

DHL eCommerce has signed a new multi-year agreement with the United States Postal Service (USPS) for last-mile parcel delivery services in the U.S., in a deal valued at more than US$10 billion.

The company says the contract is the largest in its 25-year relationship with USPS and is expected to support long-term growth as e-commerce demand continues to rise.

DHL eCommerce manages pickup, sortation through 19 automated hubs and linehaul across its air and ground network before handing off parcels to USPS for final delivery. The Postal Service network reaches more than 41,550 ZIP codes and over 170 million delivery points six days a week.

“This agreement creates a dependable, long-term platform for our customers,” said Scott Ashbaugh, CEO of DHL eCommerce Americas. “Working with USPS allows us to serve communities nationwide in a highly efficient way, minimizing additional vehicles on the road and supporting our commitment to reducing emissions. Postal Service carriers are trusted members of the communities they serve, and we’re proud to partner with an organization that shares our focus on reliability, transport safety, and public service.”

Postmaster General and CEO David Steiner said the deal marks a significant step in the partnership between the two organizations.

“Today marks an exciting milestone in the evolution of our relationship with DHL eCommerce,” said Steiner. “This extended and exclusive agreement reflects a shared commitment to innovation, operational alignment and delivering greater value to the shipping marketplace. By aligning more closely with our transformed network, we are creating a stronger, more efficient last-mile solution that expands customers’ access to the Postal Service’s unmatched reach. Together, we are building a more flexible, market-responsive model that enhances reliability, supports growth and positions both organizations for long-term success.”

DHL eCommerce, part of DHL Group, focuses on domestic and export parcel delivery for medium- to high-volume business-to-consumer online retailers in the U.S. market.