The USPS has been successfully delivering mail for many decades, but the industry is currently changing significantly. In particular, USPS needs partnerships with private delivery companies such as FedEx and the transformation of its own model. USPS has come a long way in order to carry out its mail delivery activities successfully. However, in today’s world, the company faces the challenge of more efficient private couriers.
The development of the USPS began in the colonial era and helped in the formation of the changing state at that time. It is noteworthy that with the growth in the number of mails, the need for private carriers and contractors also increased (Upholt, 2020). The development of railroads and steamboats to transport mail also rendered the USPS business model obsolete. Private carriers began to use the developed infrastructure to deliver mail at lower rates and faster deadlines (Upholt, 2020). In later periods, the USPS Gained a monopoly on letter delivery and began delivering mail door-to-door rather than office-to-office. In addition, USPS delivered to rural areas, which often cost money but allowed people to get service in remote points. Moreover, a package weight limit has been set; heavier parcels were delivered only by private companies. However, this fact allowed them to unite in cartels and set extremely high rates, which forced USPS to abandon this practice.
Overall, throughout its existence, USPS has provided Americans with affordable and ubiquitous mail delivery. Private couriers throughout history have acted as partners rather than serious competitors of the company. Moreover, the USPS stimulated the development of the postal infrastructure that formed the basis of modern mail and freight delivery. However, the situation is currently changing, and USPS needs to be transformed in order to compete with private carriers effectively.
The modern hyper-competitive space presents a challenge for the USPS. First of all, the amount of work that the company has to cope with is extremely large and cannot be compared with private carriers. USPS still has low shipping rates that can’t be matched by private companies. This aspect greatly affects the profitability of the USPS, which is experiencing economic downturns. Currently, the delivery of goods in the company is much cheaper than in private companies. This is primarily due to more funding from private carriers, who can afford to hire more staff as well as the necessary equipment. Delivery in private companies is often faster and better, which does not allow USPS to compete with them in the quality of services fully.
An important factor is that USPS partners with companies such as Amazon and FedEx to deliver mail to the door to minimize costs and time. This aspect identifies that private companies are better able to handle the individual delivery that customers now need. With the development of the Internet and online commerce, people are increasingly in need of fast delivery of goods to the door. USPS is unprofitable for dealing with individual deliveries in a short time due to low rates. This approach is promising since USPS can be used as the main hub and then transfer deliveries to private carriers (Laseter et al., 2018). The development of e-mail is also minimizing USPS’ role as a mail carrier in the US, further reducing opportunities for the company. Currently, it needs to be transformed to focus on faster individual delivery of goods.
Laseter, T., Tipping, A., & Duvien, F. (2018). The rise of the last-mile exchange. Strategy+Business. Web.
Upholt, B. (2020). The tumultuous history of the U.S. Postal Service—And its constant fight for survival. National Geographic. Web.