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The Net Takeaway: USPS now using UPS (and Fedex)?

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USPS now using UPS (and Fedex)? · 08/05/2006 11:53 AM, Trivial

Update: Perhaps none of us should use Fedex or UPS if this link and its comments are accurate.

From Direct magazine, 6/29/2006:

Postal Service Expands Contract With UPS
The U.S. Postal Service has expanded its relationship with United Parcel Service (UPS) to have the private courier transport primarily first class and priority mail to and from 98 U.S. cities, up from a current 16.

This arrangement begins Sat., July 1. According to the USPS, customers will see no change in the way their mail is delivered and post office retail operations will remain the same.

I see. So, the United States Postal Service is now outsourcing their sole and only line of business, delivering mail.

Hmm.

UPDATE: Even Fedex gets in the act… from The Washington Post

FedEx, US Postal Service renew delivery deal
Reuters
Tuesday, August 1, 2006; 9:37 AM

CHICAGO (Reuters) – Package-delivery company FedEx Corp. (FDX.N) and the U.S. Postal Service on Tuesday said they had renewed through 2013 an agreement for FedEx’s FedEx Express unit to transport domestic mail by air.

The contract, expected to generate about $8 billion in revenue over its seven-year life span, calls for Memphis, Tennessee-based FedEx’s express delivery unit to transport about 4 million pounds (1.814 million kilograms) of mail between U.S. airports each day.

The deal comes just over a month after FedEx’s main rival, United Parcel Service Inc. (UPS.N), announced it had a deal with the U.S. Postal Service increasing the amount of packages it would deliver to more than $100 million annually. UPS, the world’s largest package delivery company, said at the time that it would seek to gain more business from the postal service over time.

FedEx has been far ahead of its rival in hauling packages for the postal service, carrying 1 billion pounds of mail in 2005 and generating revenue of around $1.3 billion.

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  1. OK OK…...
    98 citites?
    What are those cities?
    My whole future depends on
    where they will fly…....


    William Fox    Jul 6, 01:07 AM    #


  2. While I couldn’t find the list, I did find out that this has been going on since at least 2004, thanks to this Motley Fool piece on FedEx. It seems that the USPS makes its money on selling access to services via stamps and other pay-to-play techniques, and outsources the actual delivery to whomever wins the contract.


    Michael Wexler    Jul 6, 11:01 AM    #


  3. I am contracted with the usps in the form of picking up from the airlines. Southwest Airlines no loner has an air conract as well as other air carriers. They did not want to mess with live animals or hazmat. All airlines are getting away from these contracts to fly mail. Because the Gov said no piece of mail can be over 16 oz. GO FIGURE!
    Seems like the airlines and the FAA could have spent their money more wisely on Xray since 9-11. The mail did not bring down those planes. But the postmaster himself back in 2001 before 9-11 had SOLD OUT to FEDX. To the tune of THREE BILLION last year. No telling how much since 2001. But then UPS and FEDX can give better service than the airlines….because that is what they do. (finger to head) post office? buy your own planes…
    DUH!!!!!!


    William Fox    Jul 6, 01:18 PM    #


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