The United States Postal Service (USPS) on Tuesday officially opened its dedicated bid solicitation platform, marking a historic shift in how it grants would-be shipping partners access to its last-mile delivery network.
For the first time, more than 18,000 destination delivery units (DDUs) and local processing centers (LPCs) will be accessible via an open bidding process–a move that effectively democratizes a service previously locked up by a small circle of high-volume companies.
The Postal Service has been selling delivery service direct from its Destination Delivery Units (DDUs) for years—generally for a limited number of large customers like UPS, FedEx and Amazon.
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Pivot to modern commerce
The initiative allows shippers of all sizes—from local retailers to national brands—to compete for space within the USPS network. Through the new website, customers can propose specific combinations of:
- Volume: The amount of mail or packages being entered.
- Pricing: Competitive rates based on market demand.
- Tender times: Flexible windows for dropping off items for same-day or next-day delivery.
Postmaster General and CEO David Steiner characterized the move as a necessary evolution in a post-pandemic economy.
"We recognize trends in the shipping marketplace... have driven our customers to prioritize convenience," Steiner said. "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."
Financial stability and growth
The Postal Service anticipates that this open-market approach will generate billions of dollars in new revenue. By allowing the market to dictate pricing based on capacity and competition, the USPS aims to strengthen its financial viability while providing shippers with a distinct competitive advantage in speed and reliability.
Winning bids will be formalized through Negotiated Service Agreements (NSAs)–contracts designed to be highly customizable, allowing businesses to tailor the length of the agreement, critical entry times, and specific terms to their unique supply chain needs.
USPS reported "substantial interest" from the private sector following an initial announcement in December. Ahead of Tuesday's launch, the organization said it engaged directly with shippers to fine-tune the platform.
"Our last-mile delivery provides fast and reliable service throughout the United States," Steiner added. "We want to provide that competitive advantage to our customers through a consumer-tailored last-mile solution."
