Viewpoints on Innovation

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

Strategy
Comment

Analysis:

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.

Source:

http://online.wsj.com/articles/usps-wins-approval-to-continue-grocery-delivery-test-1414179434


Read More Strategic Briefs:

Looking for strategic analysis of recent global news on strategy and innovation? Strategic Briefs are formal, quick reads for busy innovation professionals across industries. Briefs address implications for the company, customers, market and industry. Read, share and join the conversation!

Originally published on October 30th, 2014

What's your view? Add your question or comment

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.
More Viewpoints by Matt Smart

What's Your View?

comments powered by Disqus

Don't miss future posts.
Get Viewpoints Digests delivered right to your inbox.

Subscribe Now Leave me alone