USPS and DHL eCommerce announce $10 billion last-mile delivery deal
The Story
The United States Postal Service has announced a $10 billion agreement to provide last-mile package delivery services for DHL eCommerce, an arm of German package provider DHL. The multi-year deal is intended to expand USPS’s revenue base, as Postmaster General David Steiner previously warned the agency could run out of cash within a year unless Congress lifts a borrowing cap.
Key Facts
- The USPS said Thursday it reached a $10 billion deal with DHL eCommerce for last-mile delivery services.
- Last-mile delivery is the final step from a local distribution center to a customer’s door, described as the most labor-intensive part of delivery.
- Postmaster General David Steiner stated the USPS delivers to 170 million locations six days a week, calling it “the best last-mile provider by default.”
- Steiner said the agency must “meet the customers where they are” and meet their needs.
- The USPS and DHL said the agreement is a multi-year commitment but did not elaborate on the duration.
- In March, Steiner told the AP that the USPS could run out of cash within a year unless Congress lifts a decades-old cap on borrowing.
- The USPS said in December it intended to open its last-mile network to large and small shippers, expanding beyond current arrangements with Amazon and UPS.
- Scott Ashbaugh, CEO of DHL eCommerce Americas, said the deal would help DHL eCommerce grow in the U.S., minimize additional vehicles, and support emissions reduction.
Conflicting Reports
No conflicting reports identified in the source article.
Still Unclear
No open questions identified in the source article.
Misconceptions
No widespread misconceptions addressed in the source article.
Key Figures
- David Steiner, Postmaster General of the USPS
- Scott Ashbaugh, CEO of DHL eCommerce Americas
Sources: abcnews.com
