What's happened
The US Postal Service is losing over $100 billion since 2007, with a $9 billion loss in FY2025. It is exploring privatization and new delivery contracts to stay afloat amid declining revenue and potential restructuring.
What's behind the headline?
The USPS's financial struggles are driven by a combination of declining mail volume, increased competition, and outdated infrastructure. The agency's move to seek bids for last-mile delivery contracts signals a shift towards privatization, aiming to diversify revenue streams. This strategy could reshape the logistics landscape, benefiting large shippers and retailers who seek reliable, fast delivery options. However, it risks undermining the universal service obligation that has historically defined USPS. The decision to open 18,000 delivery points and seek profit-driven contracts indicates a fundamental change in the agency's role, potentially leading to reduced service levels for less profitable areas. The ongoing financial crisis underscores the need for structural reform, but the path forward remains uncertain, with political and economic implications for the future of postal services in the US.
What the papers say
The New York Times reports that USPS is seeking to privatize parts of its operations amid over $100 billion in losses since 2007, with President Trump criticizing its performance. The Independent and AP News detail USPS's plan to expand last-mile delivery contracts, aiming to boost revenue by leveraging its extensive delivery network. Both sources highlight the agency's efforts to modernize and adapt to a changing logistics environment, emphasizing the potential shift from a public service to a profit-oriented enterprise. The coverage underscores the tension between maintaining universal service and pursuing financial sustainability, with industry experts debating the long-term impacts of privatization on service quality and accessibility.
How we got here
The USPS has operated since 1775, with roots in Benjamin Franklin's colonial mail service. It has traditionally provided universal delivery to all addresses, funded largely through postage and government support. Recent financial losses and declining mail volume threaten its future, prompting calls for modernization and privatization.
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