USPS Inks $10B DHL Contract to Boost Last-Mile Delivery Revenue

Key Details The U.S. Postal Service has secured a multi-year contract worth over $10 billion to provide last-mile parcel delivery for DHL eCommerce. This deal represents a major revenue opportunity for the struggling agency, which reported a $9.5 billion net loss in fiscal year 2025. Why It Matters Postmaster General David Steiner is prioritizing revenue growth over cost-cutting to stabilize USPS finances. The DHL contract follows Amazon's reduced agreement and reflects the Postal Service's strategy to maximize its most valuable asset - the nationwide last-mile network that reaches every American address. What's Happening Now USPS recently changed bidding rules to allow shippers greater flexibility in dropping loads at post office levels rather than upstream distribution centers. This auction-based approach has attracted multiple logistics companies, with the Postal Service's three largest last-mile customers already generating over $8 billion annually. The Bottom Line Steiner has also implemented a spending freeze on nonessential expenses to avoid a potential cash crisis within 12 months. These aggressive revenue-generating moves signal USPS commitment to leveraging its infrastructure advantage while the agency navigates significant financial challenges in the competitive parcel delivery market.