U.S. Postal Service to Test Same-Day Delivery in New YorkAngela Greiling Keane
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. and FedEx Corp., and compensate for a steady decrease in the volume of first-class letter mail, its most profitable operation.
The service announced an agreement with 1-800-FLOWERS.com in December 2012 to try same-day deliveries in San Francisco, and UPS and FedEx have also tested them.
David Partenheimer, a Postal Service spokesman, had no immediate comment.
UPS has 51 percent of the U.S. small-package shipping market, followed by 34 percent for FedEx and 15 percent for the Postal Service, according to a Bloomberg Industries report.
The Postal Service reported an annual loss of $5 billion in its last fiscal year while increasing its revenue for the first time since 2008.
The service, which has sought legislation from Congress to alter its business model and cut costs, has said it’s looking to the Amazon test to spur similar deals with other retailers.
It already offers a Sunday delivery option for Priority Mail Express, its fastest service. The Postal Service doesn’t deliver regular mail on Sundays and has been rebuffed in attempts to end that service on Saturdays.