The U.S. Postal Service plans to test same-day delivery in the New York metropolitan area for the next year, expanding a pilot program it started a year ago in San Francisco to win business from online retailers.
The Postal Service disclosed its plans to expand the same-day distribution test to the biggest U.S. metropolitan area in a regulatory filing today. The move comes three weeks after the service struck a deal with Amazon.com Inc. to deliver the retailer’s shipments on Sundays in New York and Los Angeles.
The Postal Service is looking for ways to expand its share of express and package deliveries in competition with United Parcel Service Inc. (UPS) and FedEx Corp. (FDX), and compensate for a steady decrease in the volume of first-class letter mail, its most profitable operation.
The service reported an annual loss of $5 billion in its last fiscal year while increasing its revenue for the first time since 2008.
David Partenheimer, a Postal Service spokesman, had no immediate comment.
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