Thursday, November 14, 2013

Amazon, USPS, and Sunday Delivery

The United States Postal Service (USPS)  https://www.usps.com/ continues to have financial problems and had even considered deleting Saturday delivery, while seeking a rate hike in 2014. The thinking was to contract services to save money.  But there is a saying about business: "to make money you have to spend money."  And someone at USPS has heeded that old adage.

Just this week, Amazon.com http://www.amazon.com/ has announced that it has teamed with the USPS to provide home delivery of their products on Sunday http://www.usatoday.com/story/tech/2013/11/11/amazon-sunday-delivery-usps/3479055/. Although Amazon may use other delivery services, only the USPS has the address of every residence in the country.  The plan will roll out first in New York City and Los Angeles.  The article indicates that coverage will spread to include much of the population of the United States, and mentions some major cities.  I did not know that was much of the population of the United States.

I think this is interesting and will watch to learn how this works out.  It raises a lot of questions in my mind. Will the USPS have to hire more people?  Will delivery be truely overnight? Amazon is adding additional warehouses around the country to decrease delivery time.  Will this create more jobs and encourage more spending? How will this impact Amazon? How will this impact the USPS overall.


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