UPS, Postal Service to reunite for delivery of low-budget shipments

UPS has reached a tentative agreement with the U.S. Postal Service to provide last-mile parcel delivery for its low-cost Ground Saver shipping service, company officials disclosed on Tuesday, patching up a relationship that ruptured in late 2024 over rate hikes.

The move is part of a multi-pronged effort at UPS to reduce costs in the face of declining volumes in its domestic parcel business.

UPS has a “preliminary understanding” on revenue and rates with the Postal Service to resume home delivery for Ground Saver, CEO Carol Tomé said during a briefing with analysts about third quarter results. Details of the deal are expected to be ironed out by the end of the year.