DHL eCommerce has agreed to a $10 billion exclusive deal with the U.S. Postal Service for last-mile parcel delivery services.

The multi-year deal will combine DHL's automated sortation hubs and air and ground networks with USPS's final mile delivery network, reaching more than 41,000 ZIP codes and 170 million addresses six days a week. 

“This agreement creates a dependable, long-term platform for our customers,” DHL eCommerce Americas CEO Scott Ashbaugh said in a May 28 news release. “Working with USPS allows us to serve communities nationwide in a highly efficient way, minimizing additional vehicles on the road and supporting our commitment to reducing emissions."

USPS had long been rumored to be searching for new partners after Amazon announced in April that it would be cutting around 20% of its package delivery volumes with the agency. Amazon had initially considered a two-thirds reduction in its USPS volumes, after the agency reportedly walked away from negotiations to pursue a wider auction for its delivery services last December. Amazon has since rolled out its own end-to-end supply chain service, and in 2025, it became the largest parcel carrier in the U.S.

DHL has had mixed fortunes in the U.S. market. The package carrier and logistics provider (originally named after founders Dalsey, Hillblom and Lynn) was founded in San Francisco, California, in 1969, and expanded its service throughout the world by the late 1970s, but was then taken over by German postal service Deutsche Post between 1998 and 2001.

It struggled to compete in the domestic U.S. market with rivals FedEx and UPS, and eventually announced in 2008 that it would discontinue domestic air and ground operations within the U.S., and ended domestic pickup and delivery service in the U.S. in 2009. Although the company still handles international packages bound for the U.S., it announced in April 2025 that DHL Express would be suspending all consumer deliveries to the U.S. worth more than $800, due to the end of de minimis Customs exemptions.