US Postal Service Allowed to Deliver Groceries
Staff Reporter | | Oct 26, 2014 02:19 AM EDT |
(Photo : Mike Blake / Reuters) Delivery giants FedEx and UPS believe USPS is taking advantage of near monopoly privileges.
The United States Postal Service (USPS) has warranted the approval of the Postal Service Regulatory Commission for a two-year trial of grocery deliveries. The market test kicked off in the San Francisco Area and may roll out later in Las Vegas, Phoenix and Portland.
The go signal was given on Thursday, seeking immediate implementation. USPS will be open for door-to-door grocery deliveries between 3 a.m. and 7 p.m.
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The Postal Service has an ongoing test with Amazon.com, which was extended when the Commission laid down its decision.
The added service is hoped to rake in more revenues for the federal agency plagued with budget troubles and decreasing relevance in the digital age.
The Commission has emphasized "the need for flexibility in a changing economy", reports say. It singled out ridesharing services Uber and Lyft as examples.
The regulatory board has given the Postal Service a limit on revenues during the test, less than $10 million, only a fraction of what the agency originally hoped to achieve.
It can only reapply for the waiver after presenting proof that the experiment: 1) benefits the public and meets an expected demand, 2) contributes to the USPS' financial stability and 3) fair to competition.
USPS has been aggressive in its recent efforts to stay relevant. Competing with the delivery big boys, FedEx and United Parcel Services (UPS), the Postal Service was allowed as much as 58 percent price cut.
Needless to say, private owners did not take it lightly. Both UPS and FedEx believe USPS is imposing its privileges as a near monopoly.
TagsUnited States Postal Service, Amazon, Grocery deliveries San Francisco
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