U.S. Postal Service (USPS) Plans Grocery Deliveries to Private Residences

In a series of attempts to revive its ailing profit margins, U.S. Postal Service is all set to deliver grocery items to personal residences. USPS asked for permission from the Postal Regulatory Commission over the matter and the agency is likely to go for a two-year test run.

According to USPS, this initiative is likely to bring in additional $10 million in revenues, which reported net loss of $5 billion in 2013. According to Michael Santoli, Yahoo Finance Senior Columnist,

“We have a human being going to this address no matter what.” This plan will lead to “incremental revenue without necessarily being also an incremental expense.”

Under the initial plan, USPS would work with retailers, who would be able to drop grocery packages between 1.30 am to 2.30 am. USPS would start delivery between 3 am to 7am in the morning and considering the fact that it will not add up to any overhead costs, this whole system could work efficiently.

Santoli further added that many local delivery systems didn’t succeed because of the expense involved in delivering to so many addresses. While talking about the whole delivery system, he said, “Maybe this is sort of a mutual solution,” and it will help both USPS and local retailer to save some extra money, although it might not bring it significant amount of cash.

This is not the first time when USPS has come up with plans to bring in more revenues and lower its loss margins. In November 2013, USPS and Amazon.com, Inc. (NASDAQ:AMZN) established a partnership under which, USPS was to deliver packages on Sundays at regular postal rates. During the same period, USPS was in talks with Staples, Inc. (NASDAQ:SPLS) to open 82 postal centers at Staples stores.

This article has been written by Prakash Pandey.

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