The US Postal Service has jumped outside of the normal delivery of piece mail into same-day grocery delivery, in hopes to generate more revenue and profitability.  Internet Retailer recently reported that the USPS will begin extending Customized Delivery, the name of its’ grocery delivery service, on June 29th or shortly after that.  Testing of the service began late last year in San Francisco, delivering on the behalf of AmazonFresh in 38 various zip codes in that area.

The mail company performed filing to the Postal Regulatory Commission regarding the new venture.  The article mentioned the filing did not state the USPS will be delivering AmazonFresh orders in New York.  Yet, AmazonFresh was launched in in Brooklyn and Manhattan late last year, in addition to AmazonFresh Philadelphia.  Amazon has been working with the Postal Service for years now, even with performing Sunday deliveries.  The report stated via logistics consulting firm MWPVL International states that from 16 US sorting centers, Amazon groups packages by zip code and send them to the USPS, which the USPS then delivers.  This bulk shipping cuts Amazon’s costs versus going with UPS or Fedex, and at the same time, increases USPS revenue.

It does make sense for the largest e-retailer to partner with essentially the largest US mail delivery company.  Amazon deliveries large totes to postal locations between 1:30-2:30am, which then are delivered by postal carriers between 3-7am. The USPS has the capability and capacity to handle large, volume deliveries with its’ robust vehicle fleet and physical locations to match.  This suits the Postal Service’s ambitions for revenue growth and sustainability.  Two companies simultaneously can meet key needs .

Amazon will gain from the partnership a delivery system to handle its volume and quest for the next level of free same-day delivery.  The retailer recently announced the implementation of free same-day delivery in 14 metropolitan cities the US.  Its Prime members that make a $35 purchase by noon, will receive their online order by 9pm that same day free.  More than 1 million items, such as games, cooking tools, books, household goods, and electronics will be available.  The initial launch rolled out in California cities in the Southland, yet will be expanding into the San Francisco Bay Area and other major cities, including Baltimore, Boston, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Washington DC, and Atlanta. 

The Postal Service had $5.5 billion in loses in 2014.  Its main challenge is its government obligation to cover health retirement benefits decades in advance, which resulted in several past defaulted government loans.  Therefore, innovation is the key and the USPS appears to be headed in the right direction, as many other companies are doing to keep pace with new business trends.  Same-day delivery is becoming a staple service that retailers won’t be able to do without in the coming years.  A same-day courier like 1-800courier is a viable option to partner with to implement on-demand delivery services fast.  The New York Courier has the expertise and size to deliver items for any retailer in Atlanta, as well as nationwide.