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> 1. Because their prices are uniform and fixed by legislature, and they are required by law to serve every part of this country, including remote rural areas.
by obmelvin 6y ago
> 1. Because their prices are uniform and fixed by legislature, and they are required by law to serve every part of this country, including remote rural areas.
>This means that private carriers cherry-pick profitable, high-volume, high-margin parts of mail delivery, while letting USPS handle the unprofitable, negative-margin parts of mail delivery.
This is such an important part that appears [0] to be missing from most recent journalism about the USPS. Unless you want to tell a large portion of this country "sorry, you need to drive X miles to pick up your own mail" someone is going to have to do these delivery routes. Perhaps I'm wrong, but it seems unlikely that a private company can serve these routes in a clearly fundamentally cheaper manner. There are lower bounds on the costs, i.e. the sparse delivery routes are real geography with real people, you have to physically traverse them to make deliveries.
[0] based on my recollection
- vkou 6y ago> Perhaps I'm wrong, but it seems unlikely that a private company can serve these routes in a clearly fundamentally cheaper manner. You're not wrong. None of the private mail carriers can beat USPS pricing on these routes and still turn a profit.