DHL eCommerce and USPS enter $10 billion - plus, long‑term exclusive agreement
- Jun 1
- 2 min read
DHL eCommerce and the United States Postal Service (USPS) have announced a new long term exclusive agreement for last mile parcel delivery services across the United States. Valued at more than $10 billion, the contract represents the largest deal in the 25 year partnership between the two organizations and is expected to strengthen both companies' positions in the rapidly growing e commerce market.
Under the agreement, DHL eCommerce will continue to rely exclusively on USPS for final mile delivery services in the United States. DHL will manage parcel pickup, sortation and transportation through its network of 19 automated hubs, while USPS will complete deliveries to customers nationwide. The arrangement enables DHL to leverage the Postal Service's extensive delivery network, which reaches more than 170 million delivery points across over 41,000 ZIP codes six days per week.
The expanded partnership is expected to support DHL eCommerce's long term growth ambitions in the United States. The company aims to capitalize on increasing e commerce volumes without investing in its own nationwide residential delivery infrastructure. By focusing on first mile and middle mile operations while outsourcing final delivery to USPS, DHL can scale its operations more efficiently and improve service coverage across the country.
For USPS, the agreement provides a significant and stable source of revenue at a time when the organization continues efforts to improve its financial performance. The Postal Service has increasingly positioned itself as a logistics partner for major parcel operators, leveraging its nationwide network to support commercial shipping customers. Industry observers view the DHL agreement as a major step in USPS's strategy to expand its role in the growing parcel delivery market.
Executives from both organizations described the deal as a mutually beneficial partnership. DHL gains access to the country's most extensive last mile delivery network, while USPS secures long term parcel volumes from one of its largest customers. The agreement is also expected to support more efficient delivery operations by reducing the need for duplicate transportation networks and minimizing additional delivery vehicles on the road.
The contract highlights a broader trend within the logistics industry, where companies increasingly focus on their core operational strengths while partnering with specialized providers for other parts of the supply chain. As e commerce volumes continue to grow, strategic collaborations such as the DHL USPS partnership are expected to play a key role in shaping the future of parcel delivery in North America.
Image source: dhl.com
