UPS and USPS Reunite

UPS and the U.S. Postal Service (USPS) have reached a preliminary agreement to collaborate again on Ground Saver deliveries, with USPS providing last-mile support. This move aims to blend USPS’s nationwide last-mile reach with UPS’s middle-mile network to improve efficiency and cost for economy parcels.

A Renewed Partnership

According to reporting on October 29, 2025, UPS and USPS have aligned on key terms covering volume and rates for the resumed Ground Saver hand-off (similar in spirit to the former SurePost model). UPS CEO Carol Tomé signaled optimism about the arrangement and indicated further detail will follow as the agreement is finalized.

Why It Matters

• UPS Efficiency: Handing the final mile for economy shipments back to USPS is expected to improve stop density and reduce the operational drag that arose when UPS insourced these deliveries in 2024–2025.
• USPS Utilization: The Postal Service gains incremental parcel volume that leverages its universal last-mile network, including harder-to-reach ZIP codes.
• For Shippers: Potentially steadier service and more competitive pricing for lightweight, non-urgent eCommerce parcels—especially to residential and rural addresses.

What to Watch Next

• Scope & Volume: How much of Ground Saver volume will USPS carry, and how quickly?
• Rate Structure: The specifics of pricing, thresholds, and any peak-season provisions.
• Service Levels: Reliability targets, transit expectations, and how performance is measured and reported.
• Timeline: The effective date for shipper cutovers and any transitional steps required in labels, APIs, or routing guides.

The final terms of the agreement are expected to be finalized by year’s end.