US Postal Service Loses $2 Billion, Can Same-Day Delivery Help?

The US Postal Service has tried to turn the tide in the recent years and everything appeared to be head in the right direction. However, the earnings for the second quarter has the mailing company holding its' head down for the moment.

With some disheartening figures, the US Postal Service lost $2 billion in the 2nd quarter of this year. The losses were between April and June. This is a huge difference from a net loss of $740 million during the same period in 2013. Therefore, its' losses more than doubled in direct comparison. One contributor to the hit is the falling use of first-class mail, which use to be a key profit maker for the USPS. It fell 1.4 percent, yet was offset by the 3.2 percent rise in revenues for the same product

Joseph Corbett, the USPS Chief Financial Officer and Executive Vice President, did comment on the stunning numbers, yet appears to be focused on the operational needs as the solution. "To continue to provide world-class service and remain competitive, we must invest up to $10 billion to replace our aging vehicle fleet, purchase additional package-sorting equipment, and make necessary upgrades to our infrastructure". The delivery fleet is one of the competitive advantages for the company, which it can't do without, especially because its' trucks can be used for other business ventures.

These figures were staggering the company attempting to regroup and make a comeback from multiple years of high-digit losses. The USPS says the big hits are a result of the government's requirement to reserve billions to ensure that its' retirees have their future health benefits. The payments are made in installments of $5.7 billion, which it has already defaulted on three of its' payments, as another payment is due September 30th, which is weeks away. It can be challenging to get ahead with these constant payments required and the USPS finds what little revenue it has received since last year to quickly turn into losses.

The mailing company attempted to be innovative last year, launched PostMate, which offering same-day delivery of packages and other items. It also began working with Amazon to provide deliveries as well. Amazon knows that the USPS has the delivery system it takes to really nail down a solid foundation for delivering online orders the same day. It definitely has the robust fleet size it takes to perform same-day delivery in multiple US cities nationwide.

Can same-day delivery help the US Postal Service? With the growth of same-day delivery throughout the US, all the company needs is a strong partnership coupled with a strong business innovation in regards to e-retail. Amazon, Google, eBay and more all desire a grounded delivery fleet. The USPS appears to turning more and more towards innovation to get out of the red, which just might work. Any company can partner with a Same-Day Courier like A-1 Express and implement same-day delivery for online order fulfillment. The New York Courier has the expertise and delivery system it takes to help any company thrive delivering products the same day.

Reference: 8.12.14, www.msn.com, Elvina Nawaguna, U.S. Postal Service loses $2 billion in second quarter