Everyone knows that the United State Postal Service (USPS) has been in financial trouble since the 21st century began. That is not surprising given that most financial transactions now take place on the Internet. I can’t remember when I last mailed a bill payment through them or much of anything else for that matter. This post is about what may just be the future of the USPS and that is as a FDD.
I have let it be known here at RJsCorner that I am a frequent Amazon user. For those of us in rural areas, we no longer have to get in the car for an hour round trip to do much of our shopping. We can simply go on-line and order it and it comes to the door within two days. Now, I see where Amazon’s goal is next-day delivery and for urban areas same-day delivery!
I know that there are some of you who think that Amazon is killing local businesses, but I kinda think that Walmart pretty much did away with most decades ago. But that discussion is probably for a future post. Let’s get back to a re-purposed USPS.
In the early 2000s Amazon shipped most of the products via UPS and FedEx. The last few years they have, as usual, changed that strategy to become more efficient. Now they ship from regional warehouses directly to the local post office for delivery to the final destination. That will very likely prove a win-win strategy.
The Post Office gets much more business and Amazon can concentrate on bulk deliveries. I know from a personal standpoint that Snail Mail delivers about 80% of what I buy from Amazon now. Only the larger stuff comes from UPS. I don’t know the numbers but I suspect that at least half of USPS deliveries are now from on-line retailers.
In conclusion, the days of the old style USPS are limited. To match their new persona they should be named FDD (Final Destination Delivery). Another thing that needs to be done it to break them away from the Federal Government into a separate publicly owned business enterprise.