He stated the USPS could be profitable if it changes its’ business model and experimented with same-day delivery of packages and grocery deliveries as forward-looking tactics. He stated, “There’s plenty of interesting opportunities going on, we think, from the standpoint of delivery, many different things. The grocery business could be a multi-million-dollar business from our perspective … You can’t limit yourself to what you’re doing now.” There are a number of retailers already involved in same-day delivery of their products that outsource to a same-day courier like 1-800 Courier to pick up and deliver items.
The mail giant strongly desires to get away from the hands of Congress, deeming it doesn’t have the autonomy to get itself out of the deep hole financially. The article quoted Donahoe stating at the National Press Club, “Congress needs to look at the Postal Service as a business that is going to be a lot different in the coming years and it should view this as a positive, desirable outcome”. With the way technology has morphed business done online, all it takes is the right innovation for the USPS to make become strong, i.e. delivering groceries same day.
Online retail is estimated to increase to $500 billion by 2018. It is a viable avenue for the US Postal Service to take because it has the operational facilities and vehicle fleet to deliver a wide range of items within major US cities. It already delivers our mail, therefore, delivering online products and groceries makes sense. Metro Post, the USPS’s last-mile delivery service, already partners with Amazon to perform same-day delivery on Sunday’s in New York. Expansion of Metro Post is a matter of partnering with more web-based and physical store retailers.
Reference: 1.6.15, www.reuters.com, Jason Reed, Outgoing U.S. postal chief hails grocery delivery, seeks innovation