USPS began making special deliveries of Amazon packages on Sundays in 2013 at a time when Sunday deliveries were unheard of other than for special Express packages. Over time, that extra day on the roads took a toll on the aging fleet of postal trucks.
President Trump called the USPS Amazon's "delivery boy" in 2018. And as late as 2023, there was concern from some quarters that Amazon's relationship with the USPS was
putting pressure on mail service.
New Postmaster General David Steiner said on Friday it's time to rethink the practice of providing exclusive access to its greatest assets to a few high-volume customers. In an address to the USPS Board of Governors November 14, Steiner said:
"I do believe that we need to lean more heavily into our greatest asset - our first and last mile. We previously encouraged access to this valuable asset for only a few high-volume customers. I believe this undervalued our reach, limited business partnerships, and restricted revenue generation. We can, and will, better utilize and monetize our first- and last-mile assets."
"Last mile" refers to the fact USPS delivers to every address in America, no matter how rural or remote - and therefore is more costly to deliver.
Steiner's statement came after Amazon announced in April it would invest $4 billion to
expand its own rural delivery network. In June, Amazon said that by the end of 2025, it would have expanded Same-Day and Next-Day delivery to over 4,000 smaller cities, towns, and rural communities.
The PMG said last week he believes the USPS last mile had been historically undervalued and underused. "Simply put, we have the capacity to meet a much larger percentage of America's shipping needs - we just need to utilize our assets efficiently and effectively."
"We are open to working with customers, big and small, by offering expanded last-mile service to serve their customers, fulfill market demand, and maximize our revenue. That is why we recently began negotiating a deal with UPS to expand last-mile coverage. We are also in talks with similarly situated companies for expanded last-mile service.
"Additionally, we want to open up the last mile for retailers, large and small, so we can offer same-day and next-day delivery to their customers. We have begun discussions with a number of retailers, and the desire for fast, reliable and affordable delivery is certainly strong among all retailers."
Steiner endorses his predecessor's plan that focused on cost-cutting through the 10-year Delivering for America plan. But he's looking beyond cost-cutting to seeking ways to boost revenue. "I have taken to saying that we cannot cost cut our way to prosperity - we have to grow," he said on Friday.
Another of Steiner's strategies for revenue growth is tackling returns - "the white whale of the package industry that no one has quite caught." Steiner said, "With our huge first-mile footprint of over 33,000 facilities, we should be the most convenient returns facilitator across the United States. I will continue working with my management team to develop and refine these ideas and look forward to sharing more in the coming months."
Steiner is less abrasive in style than former Postmaster General Louis DeJoy, but as they say, the proof is in the pudding. Will he be able to provide affordable and reliable mail and shipping services to small online sellers? And is it wise for the USPS to tackle returns?
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USPS Rethinks Giving Special Access to Amazon
by: COVID-19 
by: RKTOYS