Will Amazon Expand Same-Day Deliveries?

Post Office mascot Mr Zip
There’s a fascinating article on the technology news site Wired.com. America’s postal service will stop delivering mail on Saturdays starting in August. (Except for packages and mail delivered to a postal box.) It’s a move to save money, but Wired‘s reporter sees hints of an even more interesting scenario. Amazon could start renting post office mail carriers to offer same-day deliveries for Amazon’s packages!

it’s not as crazy as it sounds. Amazon has already been testing same-day delivery in 10 cities since 2009, according to the Christian Science Monitor, and last month they reported rumors that Amazon might be expanding the program. And meanwhile the post office is already offering same-day delivery capabilities to businesses — at least in San Francisco. For the last eight weeks, the post office has been quietly testing this service (as a way to offset the money they’re losing from deliveries of traditional mail). It’s expected to raise up to $50 million after its first year just in San Francisco, according to an article in the Associated Press., which reports that “If things run smoothly, the program will quickly expand next year to other big cities such as Boston, Chicago and New York.”

The post office has noticed that package deliveries are actually increasing at a rate of more than 10%, according to the article. (Maybe because people are ordering more things online?) And it also notes that Walmart — a major competitor to Amazon — is already offering same-day deliveries. Meanwhile, Amazon has been building more and more distribution centers in more and more states. Are we looking at the beginning of a war, to see which retailer can deliver packages the fastest?

But Wired asks a more interesting question: who’s going to be doing the delivering? FedEx and the other delivery services seem to insist on an intermediate step where all the packages are first collected together at their own distribution centers before being re-routed back out for deliveries. “To make same-day work, the orders must travel straight from the distribution centers to customers,” Wired notes — adding that post office seems to have a lot of carriers now with fewer and fewer letters to deliver.

To get a definitive answer, Wired even called a spokesperson for the U.S. Postal service, who seemed enthusiastic when he agreed that “We already have the existing infrastructure in place. That’s what sets us apart.” He wouldn’t speculate about whether the post office was going to end up offering same-day delivery services for Amazon’s packages, but he did hedge that traditional mail carriers can offer an attractive choice for companies who are exploring the same option. And to that possibility, he had one more hopeful thing to say.

“We’d never close the door on ways to expand our revenue.”

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