4 ms·

In the last week I've received packages shipped via DHL and via Fedex that used SmartPost, where the USPS actually delivers the package. I don't remember ever

by smoyer 9y ago

In the last week I've received packages shipped via DHL and via Fedex that used SmartPost, where the USPS actually delivers the package. I don't remember ever having a UPS-to-SmartPost shipment. If the USPS is cheaper than these global shippers for the last-mile deliver, it might be a sign that they're not charging enough. At least in my town, they also don't seem to be very efficient - two Saturdays ago I was working in the yard and the post office went by four times during a six hour period. I can understand that the package delivery might be a different than their normal service route but shouldn't the three package deliveries have been one vehicle on our street one time? UPS is a master of route efficiency.

IAmEveryone 9y ago
If what the USPS charges for packages is "enough" depends entirely on your definition of "enough": Does package delivery lower the USPS' losses? Absolutely! Do they charge enough for package delivery to spin it out into a separate, viable business? Probably not. This unusual situation stems from the fact that the USPS is mandated by law to pass by every house in the country at least once a day, six days per week.
- chiefalchemist 9y ago
  Mind you, I have a biz address for the important mail, 95% of what comes to my home is junk mail. I don't need that daily. I would imagine 3 days a week (M+W+F and T+T+S) would be fine for residential. The problem is, that entails jobs being cut. That's a political no-go. This will never happen any time soon.
- smoyer 9y ago
  Yes ... and the best way to make money delivering packages is to include them with the regular mail so that you're passing each house exactly once. I might also agree that the package delivery is stemming the USPS' losses but you'd have to show that it's not actually causing more losses - our little village now has three USPS trucks (there used to be one). I'm also assuming additional personnel are needed for all those extra runs and we now see USPS trucks on Sundays.
commandar 9y ago
> If the USPS is cheaper than these global shippers for the last-mile deliver, it might be a sign that they're not charging enough. Conversely, it could be an indication of leveraging efficiency of scale. USPS sends a mail carrier to my house specifically most days of the week. And on the days they don't, there's still a mail carrier coming to my street at minimum. Meanwhile, UPS or Fedex may not even send a truck to my neighborhood on any given day. If they throw a package on a USPS truck for last mile delivery, they don't have to incur the cost of sending a truck out of its way. USPS is essentially selling excess capacity. It can be both cheaper and appropriately priced at the same time.

by smoyer 9y ago

IAmEveryone 9y ago

If what the USPS charges for packages is "enough" depends entirely on your definition of "enough": Does package delivery lower the USPS' losses? Absolutely! Do they charge enough for package delivery to spin it out into a separate, viable business? Probably not. This unusual situation stems from the fact that the USPS is mandated by law to pass by every house in the country at least once a day, six days per week.

chiefalchemist 9y ago
Mind you, I have a biz address for the important mail, 95% of what comes to my home is junk mail. I don't need that daily. I would imagine 3 days a week (M+W+F and T+T+S) would be fine for residential. The problem is, that entails jobs being cut. That's a political no-go. This will never happen any time soon.
smoyer 9y ago
Yes ... and the best way to make money delivering packages is to include them with the regular mail so that you're passing each house exactly once. I might also agree that the package delivery is stemming the USPS' losses but you'd have to show that it's not actually causing more losses - our little village now has three USPS trucks (there used to be one). I'm also assuming additional personnel are needed for all those extra runs and we now see USPS trucks on Sundays.

commandar 9y ago

> If the USPS is cheaper than these global shippers for the last-mile deliver, it might be a sign that they're not charging enough. Conversely, it could be an indication of leveraging efficiency of scale. USPS sends a mail carrier to my house specifically most days of the week. And on the days they don't, there's still a mail carrier coming to my street at minimum. Meanwhile, UPS or Fedex may not even send a truck to my neighborhood on any given day. If they throw a package on a USPS truck for last mile delivery, they don't have to incur the cost of sending a truck out of its way. USPS is essentially selling excess capacity. It can be both cheaper and appropriately priced at the same time.