U.S. Postal Service: Saturday is for e-commerce packages

Summary:The USPS has been rattled by digital payments, email and online marketing. However, e-commerce bolsters the USPS and may even help save it.

The U.S. Postal Service is cutting Saturday mail delivery as of Aug. 5 in an effort to save $2 billion, but the engine of e-commerce is forcing the independent agent to keep service.

The USPS has been rattled by digital payments, email and online marketing. However, e-commerce bolsters the USPS and may even help save it. The rub is that USPS has to compete with UPS and FedEx.

In a statement, Patrick R. Donahoe, Postmaster General and CEO, said:

Our customers see strong value in the national delivery platform we provide and maintaining a six-day delivery schedule for packages is an important part of that platform. As consumers increasingly use and rely on delivery services — especially due to the rise of e-commerce — we can play an increasingly vital role as a delivery provider of choice, and as a driver of growth opportunities for America’s businesses.

Here's a look at the trend that kept USPS open for package deliveries on Saturday:

usps1

 

E-commerce won't save USPS, but it certainly can't hurt. The agency lost $15.9 billion in fiscal 2012, had an $11.1 billion default the same year and is nearly out of liquidity and borrowing authority.

Also:  We still need mail as well as e-mail

Topics: E-Commerce

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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