USPS to Test Same-Day Delivery24 Oct, 2012 By: Doug McPherson
WASHINGTON – The United States Postal Service (USPS) recently announced it plans to test same-day delivery service. Insert your own joke here.
The USPS says, for now, the test will be with E-commerce companies and focus on San Francisco starting in mid-November and run for at least a year, according to Bloomberg News. The USPS adds that consumers will have till about 2 p.m. to buy goods and delivery should occur between 4 p.m. and 8 p.m. Pricing hasn’t been published.
To qualify as an E-commerce partner, a company must have at least 10 physical locations in the U.S. and at least one of these must be in San Francisco. The USPS plans to partner with up to 10 companies during the test.
According to a filing with the Postal Regulatory Commission, the USPS says it will seek to deliver just 200 packages per day during the first phase of the market test. The filing does note that more packages may be delivered after the initial test.
The USPS expects revenue from the service to top $10 million in the first year, though due to postal regulations, the filing also notes that the postal service doesn’t expect that revenues will exceed $50 million in any year.
Some E-commerce companies have been experimenting with same-day delivery. Amazon has expanded its same-day delivery service and charges $4 for Amazon Prime members or anyone who pays with an Amazon gift card. All other customers must pay about $9 for same-day service. Wal-Mart is also testing same-day services and charges a $10 flat fee.