USPS Secures Multiyear Deal with DHL Worth at Least $10 Billion

The United States Postal Service (USPS) has signed a multiyear parcel delivery contract with the e-commerce arm of global courier DHL. Under the agreement, USPS will handle final delivery to homes for DHL, leveraging its nationwide network. The deal is expected to generate at least $10 billion in revenue for the mail carrier, providing a critical new revenue stream as USPS works to stabilize its finances. The partnership supports DHL’s U.S. e-commerce expansion, aiming to scale volume through 2030. The arrangement marks the first multiyear contract between DHL’s e-commerce unit and USPS, which have worked together for about 25 years.

Postmaster General David Steiner said the agreement is expected to be worth at least $10 billion for the postal service, with the potential for more revenue over the contract term. DHL’s e-commerce unit and USPS have not specified the length of the contract. The partnership is a key source of business for USPS as it works to repair its tattered finances after years of consistent losses. The agency has struggled to cover its immense operating costs and obligations amid declining mail volumes. The deal is a significant step in USPS’s efforts to stabilize its finances and provide a reliable last-mile delivery solution for DHL’s e-commerce customers.

The partnership will enable DHL to double its business by 2030, according to Scott Ashbaugh, CEO of DHL eCommerce Americas. Ashbaugh praised USPS’s last-mile delivery capabilities, saying they are ‘the most powerful in the United States.’ The agreement is a testament to the strength of USPS’s nationwide network and its ability to provide efficient and reliable delivery services. The partnership will also support DHL’s e-commerce expansion, enabling the company to scale its volume and meet the growing demand for online shopping. The deal is a significant win for USPS, providing a critical new revenue stream and a key source of business as the agency works to stabilize its finances. The partnership is a key step in USPS’s efforts to provide a reliable and efficient last-mile delivery solution for its customers, and it is a testament to the strength of USPS’s nationwide network.