The federal government ships a considerable number of packages each year, primarily using FedEx and UPS. In fiscal year 2012, federal agencies spent almost $337 million on shipping services through General Services Administration (GSA) contracts. The U.S. Postal Service earned only $4.8 million of that revenue, or less than 2 percent, a recent Office of Inspector General audit report found.
The Postal Service faces several challenges to growing its share of this market. Unlike its competitors, the Postal Service cannot offer necessary discounts to penetrate a market, attract new customers, or match competitors’ prices. In addition, the Postal Service’s lack of a guaranteed 2-day or 3-day express delivery product prevented it from qualifying for one of the GSA’s most lucrative contracts. Priority Mail regularly meets 2-day and 3-day delivery performance (90 percent of the time), but it did not qualify because it does not include a delivery guarantee.Read More
The U.S. Postal Service adds more than 600,000 new delivery points each year, mostly in the form of new residential homes. While most new residences include cluster boxes rather than to-the-door delivery to reduce costs, delivery remains the Postal Service’s largest cost center.
Canada Post, which has suffered losses recently after years of profits, has introduced a $200 per address charge that it is assessing housing developers for installing community mailboxes. Canada Post claims the charge “is in keeping with how other infrastructure costs are shared by utilities and other services.” Canada Post, which adds almost 200,000 new addresses a year, could earn tens of millions of dollars from the fee and it would offset the added costs of new delivery points. Housing developers in Canada have been fighting the charge, arguing that it is unfair to assess new homes only, which they say receive substandard delivery service compared to older homes and apartment buildings that get delivery to the door.Read More
Imagine if customers didn’t have to wait at home for a package delivery or have to rush home from work to retrieve a package off their front porch. Or, what if they could avoid paying a fee to receive packages at another address? With 24-hour parcel lockers, their prayers are answered. Last spring, the U.S. Postal Service unveiled gopost™, a self-service parcel locker system. The Postal Service is pilot-testing the 24-hour secured locker systems in the Washington, DC, area at locations such as shopping centers, grocery stores, pharmacies, and transportation hubs.Read More