It may be a long shot for the Postal Service or it could be the best move for the mail company with expanding same-day delivery. The Washington Post recently reported that the US Postal Service has announced expansion of its' same-day delivery service Metro Post into Washington DC. Currently, Metro Post is being tested in New York and San Francisco. Both are cities that many big name same-day programs such as Google, Amazon, eBay and others roll out the service.
With Metro Post, shoppers can place orders from participating retailers by 2 pm and receive their items between 4 and 6 pm the same day. This is essentially what other web-based retailers offer with same-day delivery and the products vary. Google offers same-day courier service for hundreds of retail products, as does Amazon, in New York. EBay scaled back its service to retool, yet it launched the service in New York a number of weeks ago. Uber delivers same-day groceries, which Amazon does as well.
The article discussed how e-commerce companies can leverage the scale of the USPS, as it has the greatest access to consumer mailboxes. This is what sets it a part from other big delivery companies like FedEx and UPS. This is by far a huge advantage against its' competitors. Only the USPS can utilize residential mailboxes for delivery. It would behoove the mail giant to innovate and see how it can capitalize on something only it can provide.
Many companies are utilizing same-day delivery to gain an advantage within their business markets. Whether a physical store retailer like Macy's, or a web-based e-retailer like Google, the goal is creating a seamless offer of product and service online. Omni-channel commerce merges the two and many retailers are engaged with same-day delivery to make this happen. Even if online retailers can't perform the actual deliveries, they partner with a same-day courier like A-1 Express to do it.
It has been losing billions of dollars for quite a few year now, especially $5.5 billion in fiscal 2014, even with workforce cutbacks, facility consolidations and other cost-cutting decisions. Former US Postmaster General Patrick Donahoe talked about in a government meeting receiving the permission for the USPS to seek after delivering within other business sectors like groceries, because the opportunities are there. Delivery innovation is what the USPS has its' sights on and it is a legitimate avenue for it.
With expanding into Washington DC, Metro Post is proving to be what the US Postal Service is banking on for growth. More than likely, more US cities are to come if it works. Another plus is it has the operational facilities and vehicle fleet to deliver products anywhere. It's a matter of changing what its' driver puts in the mailbox or at the front door, from electronics to household items. If Metro Post achieves like the USPS expects it to, competitors will need an optimal delivery system. A-1 Express is a Washington DC courier that retailers can use to contend to the mailing company on a national scale and deliver quickly.
Reference: 2.6.15, Washington Post, Tige Savage, The U.S. Postal Service is throwing a Hail Mary: Same-day delivery