USPS launches bidding platform to open 18,000 DDUs for expanded last-mile delivery access
Summary
The United States Postal Service has activated a bidding website to accept proposals from shippers seeking direct access to more than 18,000 Delivery Destination Units (DDUs) as part of an expanded last-mile offering. Historically reserved for a handful of very large customers, DDU delivery access will now be open to a broader range of shippers through a solicitation process where bidders can propose combinations of volume, pricing and tender times for same‑day or next‑day delivery.
USPS leadership says recent modernisation investments give the service the processing and delivery capacity to handle a greater share of parcel volume, and that monetising last‑mile access will improve revenue and financial sustainability. The Postal Service expects to finalise negotiated service agreements (NSAs) for Parcel Select direct‑to‑consumer capability, notify winning bidders in Q2 2026, and begin service in Q3 2026.
Key Points
- USPS has launched an online bidding platform to open access to more than 18,000 DDUs for last‑mile delivery.
- DDU access was previously limited to a few large customers; the new process broadens eligibility to shippers of varied sizes.
- Bidders can propose volume, pricing and tender times for same‑day or next‑day USPS delivery at specific DDU locations.
- USPS plans to formalise accepted bids via NSAs for Parcel Select; notifications expected in Q2 2026 with service starting Q3 2026.
- USPS aims to better utilise existing capacity, increase revenue, and offer retailers an option for faster last‑mile delivery.
- Industry observers note the move could disrupt the competitive landscape (UPS, FedEx, regional carriers) but say success hinges on pricing, predictability and operational execution.
Context and Relevance
This is a notable strategic shift for USPS: treating last‑mile access as a monetisable asset rather than solely an operational cost of universal service. For retailers, 3PLs and e‑commerce platforms, it potentially gives another path to same‑ or next‑day delivery without building costly local fleets. From a market perspective, it signals greater competition for last‑mile volume and reflects pressure on carriers to find new revenue streams as parcel economics tighten.
Key uncertainties remain: how granular pricing and access will be at DDU level, minimum volume thresholds, tender time flexibility, and how predictable service levels will be once agreements are in place. Those execution details will determine whether the initiative scales beyond a few large partners.
Why should I read this?
Quick and dirty: if you move parcels, this could change how you buy last‑mile capacity. It might lower costs or at least give you more options for same‑ or next‑day delivery — but only if the pricing and service terms actually work for your volumes. Worth a skim now and a deeper look if you run retail, fulfilment or 3PL ops.
Author style
Punchy — the piece highlights strategic implications and market reaction rather than deep technical detail, so it saves you time by flagging what matters most about the move.