Internet, Email Force USPS to Cut Saturday First-Class Deliveries Starting August 1
February 6, 2013 10:28 AM
comment(s) - last by
It will save USPS $2 billion annually
Many aspects of our lives have made a
over the last decade or so. We no longer rent physical movies from the video store; we watch them on Netflix or Hulu. We no longer get subscriptions for or pick up the daily newspaper; we read the news online. We don't run to the bank as often for daily finances; we jump on our smartphone, tablet or computer for online banking.
The U.S. Postal Service (USPS) is seeing these shifts in technology as well, but
can't seem to keep up
. Many letters, bills, etc. can now be sent electronically rather than through the mail. Hence, in an effort to save some serious money, USPS will no longer deliver mail on Saturdays starting August 1, 2013.
down to five days per week will save USPS about $2 billion annually. For fiscal 2012, USPS saw a net loss of $15.9 billion (three times the loss record one year previous).
While mail delivery is getting axed, USPS plans to continue package delivery on Saturdays since this particular area has seen a 14 percent increase since 2010. Mail will also still be delivered to P.O. boxes six days per week as well.
In addition, post offices will remain open on Saturdays to allow customers to drop mail/packages off, access post office boxes or buy postage stamps -- although hours will likely be cut.
USPS is expected to give an official announcement today without explicit congressional approval. Lawmakers have said this approval is necessary for a change like cutting Saturday mail delivery, but the USPS is arguing this claim.
As far as the American people go, USPS expects some opposition from those like rural communities that worry a change in scheduling could make low-cost deliveries of items like medication a thing of the past, and publishers who will have to adjust schedules with publication deadlines.
Just last month, it was reported that
USPS wanted to be more digital-friendly
in order to keep up with the times. The agency is working on a digital platform called MyPost, which will allow customers to log in and view all packages that they'll be receiving as well as those they've already received instead of searching several different sites that the packages may be coming from.
However, Paul Vogel, president of digital solutions at USPS, revealed that his office is like "a San Jose startup," with only 15 Android/Apple developers, consultants coming and going, one computer and his BlackBerry smartphone. Technological restrictions make upgrading hard to come by.
A few other major obstacles are legislation needed to get permission for new digital products, the USPS' huge instruction manual for just handful of current products (adding digital products and security certifications would turn that 1,500 page book into something unimaginable), and USPS' losses of nearly $16 billion last year led to legislative proposals to
keep making cuts
(hence, more digital tech may not be in the cards right now).
Boston Business Journal
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RE: Dont blame the internet and email
2/6/2013 5:28:23 PM
Most of those losses are paper losses - pre-payments for paying out future employee benefits. Right now they're basically stuck making 75 years worth of pre-payments in 10 years due to accounting tricks to try to make the Federal deficit look smaller. It's not like their actual operating costs (with pre-payments properly amortized) is resulting in a loss. The problem has been known about for over a year.
RE: Dont blame the internet and email
2/7/2013 11:54:45 AM
Perhaps in 2011 but in 2012 even if you remove the pre-payments they had a $2.4 billion operating loss.
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