4 ms·
> 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
by commandar 8y 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.