WASHINGTON — The U.S. Postal Service is progressing with plans to open its last-mile delivery network to retailers, carriers, and other shippers through a competitive bidding process in early 2026. This move occurs as the agency negotiates the future of its most significant commercial relationship with Amazon.
USPS stated it will start accepting bids in late January or early February to give shippers access to over 18,000 delivery destinations nationwide. The initiative aims to enable same-day or next-day delivery by directly inserting parcels into local postal routes, with contracts expected to be finalized in the second quarter and service launching in the third quarter of 2026.
The announcement builds on earlier signals from newly appointed Postmaster General David Steiner, who has stated that USPS plans to implement a competitive, auction-style process to open access to postal facilities. This method would require Amazon, long-time the Postal Service’s largest customer, to compete with national retailers, regional carriers, and other shippers for last-mile capacity.
Thorvardur de Shong
Amazon’s current contract with USPS ends in October 2026. The ecommerce giant brings in over $6 billion annually for the Postal Service, accounting for about 7.5 percent of USPS’s total sales, according to previous agency reports.
“We have continued discussing ways to expand our partnership that would increase our spending with them,” Amazon said earlier this month, adding that it was surprised by the prospect of an auction after nearly a year of negotiations.
For retailers, expanded access to USPS’s last-mile network could offer a new way to meet increasing consumer expectations for faster delivery while managing costs. Steiner noted that the Postal Service’s current reach, serving more than 170 million addresses at least six days a week, makes it a natural last-mile provider.
“In the logistics business, the most expensive part of delivery is the last mile,” Steiner said in announcing the solicitation. He added that opening the network would help shippers reduce costs while generating new revenue for USPS.
The move also reflects broader financial pressures on the Postal Service, which has experienced a sharp decline in first-class mail volumes since the late 1990s and reported a $9.5 billion loss last year. USPS said recent network modernization investments have created additional parcel capacity that it is seeking to monetize.
Analysts observe that the stakes are high. Amazon Logistics handled 6.3 billion parcels in 2024, just below USPS’s 6.9 billion, and is projected to surpass USPS in parcel volume by 2028. Amazon has also allocated over $4 billion to expand its rural delivery network.
By opening its last-mile network through a formal bid process, USPS is signaling a more competitive, market-driven approach, one that could reshape last-mile strategy for retailers while redefining its relationship with its biggest customer.
