To compete against rivals UPS and Fed-ex, the U.S. Postal Service is now offering Sunday deliveries for Amazon as well as an earlier delivery time of 10 AM. This deal is an attempt made by the U.S. Postal Service to further boost their package delivery sales. CFO of U.S. Postal Services, Joseph Corbett, said that there has been an 8% increase in package delivery in 2013, which is the highest its been since the recession. However, this increase still might not be good enough.
The agency’s bottom line has been maintained high by an improving economy, increase in junk mail, and package delivery. However, according to the agency, they lost $5 billion the latest fiscal year, and a $16 billion loss in 2012. Even though, package delivery is expected to increase due to the upcoming holiday season, this is still not enough to save them. According to Corbett, the agency’s total liabilities were $61.5 billion compared to a mere $21.6 billion in assets.
In an effort to cut costs, the agency has retired more than 37,400 employees and raised the price on first-class mail stamps. Is this effort enough to save the agency that is in a $40 billion hole?
Sources:
Liberto, Jennifer. “Can Package Delivery save the Postal Service?” CNNMoney. Cable News Network, 15 Nov. 2013. Web. 16 Nov. 2013.
Lopez, Ricardo. “U.S. Postal Service Reports $5-billion Yearly Loss.” Los Angeles Times. Los Angeles Times, 15 Nov. 2013. Web. 16 Nov. 2013.
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