WASHINGTON — The U.S. Postal Service plans to open its last-mile delivery network to retailers, carriers, and other shippers through a competitive bidding process starting in early 2026, a move that coincides with negotiations over its expiring delivery contract with Amazon.
USPS announced it will start accepting bids in late January or early February for access to over 18,000 delivery destinations nationwide. The program aims to enable same-day or next-day delivery by routing parcels directly into local postal routes, with contracts expected to be finalized in the second quarter and service beginning in the third quarter of 2026.
The initiative reflects Postmaster General David Steiner’s push for a more competitive, auction-style approach to last-mile access. Under the plan, Amazon, the Postal Service’s largest customer, would compete with national retailers, regional carriers, and other shippers for capacity. Amazon’s current contract with USPS expires in October 2026 and earns the agency over $6 billion annually.
Steiner said that opening the network would help shippers reduce delivery costs and create new revenue streams for USPS, which still faces financial challenges due to declining first-class mail volumes. For retailers, this move could offer a new way to meet increasing consumer demands for faster delivery by leveraging the Postal Service’s reach to over 170 million addresses nationwide.
