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What have you heard about the future of Surepost?
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<blockquote data-quote="rje" data-source="post: 958722" data-attributes="member: 40978"><p>The USPS talks about "partnerships" with UPS and FedEx, but the reality is that the USPS is required by law to take "Parcel Select" packages from anybody, "partners" or not. So the USPS isn't going to "opt out" of its "partnership" with UPS or anybody else.</p><p></p><p>That said, USPS personnel obviously can be cooperative or not. The USPS didn't like UPS' "cherry picking" with UPS Basic, where UPS would give the post office only the hard-to-deliver rural packages and keep all the easy-to-deliver urban and suburban packages for itself. The USPS liked FedEx SmartPost more because SmartPost gives ALL of its packages to the USPS. And so now that's what UPS is doing too, with SurePost. So the cooperation levels should be the same for both SmartPost and SurePost, and I expect a very healthy competition between them that will benefit customers.</p><p></p><p>I'm speculating with what follows, but I'll note that the USPS is authorized to enter into an "NSA" ("negotiated service agreement") with a shipper of a "competitive" product (such as parcels) under which the USPS can offer concessions, such as lower rates, based on the shipper's particular characteristics. I don't know whether UPS SurePost and the USPS have entered into an NSA, but I would imagine they have. If so, the USPS probably would offer UPS a better deal if UPS would commit to give ALL of its SurePost packages to the USPS, not just the hard-to-deliver rural packages. If I'm right about that, it may help to explain why UPS has decided that 100% of its SurePost packages will be handed off to post offices.</p></blockquote><p></p>
[QUOTE="rje, post: 958722, member: 40978"] The USPS talks about "partnerships" with UPS and FedEx, but the reality is that the USPS is required by law to take "Parcel Select" packages from anybody, "partners" or not. So the USPS isn't going to "opt out" of its "partnership" with UPS or anybody else. That said, USPS personnel obviously can be cooperative or not. The USPS didn't like UPS' "cherry picking" with UPS Basic, where UPS would give the post office only the hard-to-deliver rural packages and keep all the easy-to-deliver urban and suburban packages for itself. The USPS liked FedEx SmartPost more because SmartPost gives ALL of its packages to the USPS. And so now that's what UPS is doing too, with SurePost. So the cooperation levels should be the same for both SmartPost and SurePost, and I expect a very healthy competition between them that will benefit customers. I'm speculating with what follows, but I'll note that the USPS is authorized to enter into an "NSA" ("negotiated service agreement") with a shipper of a "competitive" product (such as parcels) under which the USPS can offer concessions, such as lower rates, based on the shipper's particular characteristics. I don't know whether UPS SurePost and the USPS have entered into an NSA, but I would imagine they have. If so, the USPS probably would offer UPS a better deal if UPS would commit to give ALL of its SurePost packages to the USPS, not just the hard-to-deliver rural packages. If I'm right about that, it may help to explain why UPS has decided that 100% of its SurePost packages will be handed off to post offices. [/QUOTE]
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What have you heard about the future of Surepost?
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