Finance Globe

U.S. financial and economic topics from several finance writers.
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USPS: Saturday Mail Delivery to End in August

The U.S. Postal Service announced on Wednesday its plans to drop Saturday letter delivery to street addresses beginning in August. The move is expected to save the financially ailing agency an estimated $2 billion per year.

“The Postal Service is advancing an important new approach to delivery that reflects the strong growth of our package business and responds to the financial realities resulting from America’s changing mailing habits,” said Patrick R. Donahoe, Postmaster General and CEO. “We developed this approach by working with our customers to understand their delivery needs and by identifying creative ways to generate significant cost savings.”

Though for several years the USPS had played with the idea of dropping all mail delivery on Saturday, the agency has decided to continue to deliver packages on Saturday due to recent strong growth in package delivery.

“Our customers see strong value in the national delivery platform we provide and maintaining a six-day delivery schedule for packages is an important part of that platform,” said Donahoe. “As consumers increasingly use and rely on delivery services — especially due to the rise of e-commerce — we can play an increasingly vital role as a delivery provider of choice, and as a driver of growth opportunities for America’s businesses.”

Post Offices that are currently open on Saturdays will continue to remain open on Saturdays, and mail will continue to be delivered to P.O. boxes Saturdays.

Last week, the price for a first-class stamp increased one cent to 46 cents in an effort to increase revenue. Donahoe said in a statement in January that the postal service was on an unsustainable financial path and was losing $25 million a day.

The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.


Source:
U.S. Postal Service
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Thursday, 22 August 2019

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