Postal Service Losing to FedEx, UPS on Federal Shipping - Bloomberg
The U.S. Postal Service, required to send congressional letters at reduced rates, can’t win regular business from the federal government, according to an inspector general’s report.
Private-sector competitors led by FedEx Corp. (FDX) and United Parcel Service Inc. (UPS) “consistently” have more than 98 percent of the $337 million annual shipping spending by federal agencies, according to the Jan. 18 report.
“The Postal Service faces challenges to growing its share of this market,” the Postal Service’s inspector general said in the report. “Major challenges include pricing flexibility and the lack of 2- and 3-day guaranteed express delivery products.”
The U.S. Postal Service, required to send congressional letters at reduced rates, can’t win regular business from the federal government, according to an inspector general’s report.
Private-sector competitors led by FedEx Corp. (FDX) and United Parcel Service Inc. (UPS) “consistently” have more than 98 percent of the $337 million annual shipping spending by federal agencies, according to the Jan. 18 report.
“The Postal Service faces challenges to growing its share of this market,” the Postal Service’s inspector general said in the report. “Major challenges include pricing flexibility and the lack of 2- and 3-day guaranteed express delivery products.”
