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:
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.