Does the Postal Service Need to Re-examine Its Delivery Service Standards?

Public policy debates about solving the Postal Service’s financial crisis have largely focused on reducing costs by cutting service such as Saturday delivery, transitioning from brick and mortar post offices to alternative retail sales channels, or limiting other functions performed by the Postal Service. There has been less talk about the costs of meeting delivery service standards, which were reviewed following the passage of the Postal Accountability and Enhancement Act of 2006.

 

Is It Time to Re-evaluate the Retail Network?

The Postal Service is required by law to “provide, reliable, and efficient services to patrons in all areas and shall render postal services to all communities.” Consequently, the Postal Service has the largest retail presence in America with more than 32,000 leased or owned facilities located across the country. Today, alternate access channels are widely available. Customers can purchase stamps and access services at the Postal Service’s website www.usps.com, self-serve kiosks, grocery stores, retail outlets, and privately-operated shipper locations.

 

Prepaid Debit Cards Services

According to a New York Times article, nearly 10 percent of Americans do not have bank accounts. These and other underbanked people may be taken advantage of by lenders, check cashing facilities, and pawnbrokers through excessive interest rates and fees. Fortunately, in this country, there are many options for consumers to choose, including prepaid debit cards. What if the Postal Service explored partnering with prepaid debit card providers to sell prepaid debit cards at post offices, just as they are now sold at other retail outlets?

 

Who Will Make the Hard Decisions about Retail Station and Branch Closings?

As the Postal Service examines its business model and contemplates changes meant to increase its efficiency, Congress’s role in postal operations has captured public attention. A prime example is the Postal Service’s recent efforts to trim its retail operations. As a cost cutting initiative, on July 2, 2009, the Postal Service filed with the Postal Regulatory Commission a list of Post Office stations and branches it was considering closing. After the filing, many entities questioned the Postal Service’s authority to close these facilities. An article published on the U.S.

 

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