1/27/15 Same Day Delivery

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It’s no secret the Postal Service is going through tough times.

It’s been losing billions each year.  Five and a half billion in 2014.

So the Postal Service deserves praise when it considers entrepreneurial approaches to improving efficiency.  And cutting losses.

And it deserves kudos for testing pilot programs in limited areas before launching new services that may not work.

One plan being tested in the Washington, DC metro area is same-day delivery.  The plan is to partner with a selected number of online retailers.  Customers who place orders by 2 pm will have their purchases delivered by the post office between 4 and 8 pm the same day.

There are commercial businesses already carrying out same-day delivery in limited areas.

The success of the DC-area trial is uncertain.

The Postal Service completed a similar effort in San Francisco last year.  It had a target minimum of 200 packages to be delivered daily.  However, during the 6-month trial only 95 packages were delivered.  In total. 

This was about 31,000 fewer packages than the target minimum.

The post office spent over $10,000.  And took in only $760.

In a report, the Postal Service Inspector General blamed the San Francisco results on poor implementation.

Let’s see if they get better in DC.

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