Viewpoints on Innovation

Strategic Brief: USPS to Introduce ‘Customized Delivery’ to Help Boost Profits



As of last week, the US Postal Service (USPS) was given approval for a two-year grocery-delivery test, called 'Customized Delivery'. This approval will give USPS carriers permission to deliver totes of groceries, in addition to typical mail deliveries. Beginning with the Bay Area, USPS hopes to expand into additional markets at a quicker pace.

While delivering a loaf of bread along with your morning stack of bills might seem like the postal service is grasping at straws, this innovative focus on finding new delivery channels might just be the right step towards appealing to an increasingly convenience-driven consumer environment. 

The Postal Service has long been riddled with reports of declines and losses. Recently, however, the service has begun to see some positive results, reporting a $327 million dollar increase in operating revenue in its latest filings. Finding new channels for package delivery will be key for USPS to continue to sustain its growth.

In order for grocery delivery to become a sustainable source of revenue, the Postal Service will need to ensure retail use through effective partnerships. Although the Postal Service has already begun grocery delivery trials with Amazon, additional support from big-box grocers, as well as local channels would accelerate adoption rates.

The days of rushing to the store for a gallon of milk might be behind us. Instead, enjoy the peace of mind knowing that rain or shine, it will be waiting at your front door.


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Originally published on October 30th, 2014

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Topics: competitive landscape, delivery, innovation, Innovation Strategy, mail, strategic brief, strategic briefs, strategy, technology, USPS

About the Author

Matt Smart

Matt Smart

Matt is an analyst at Kalypso.
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