Dive Brief:
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The U.S. Postal Service has received permission from the Postal Regulatory Commission to deliver groceries in the New York City area.
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The move is similar to the USPS partnership with AmazonFresh in San Francisco, although the PRC filings don’t indicate whether AmazonFresh is involved.
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The USPS has dubbed its same-day delivery services, still in pilot phases, “Customized Delivery.”
Dive Insight:
While the U.S. Postal Service is at a regulatory disadvantage compared to other carriers and delivery services because it must receive federal government permission for rate hikes and service changes, it also has a lot of advantages, including a vast, nationwide fulfillment network and zip code system.
Amazon has long worked with the USPS for its deliveries and has shown that the quasi-governmental system is nimble enough to expand to Sunday delivery and now even same-day. These are the kinds of developments that will keep retail delivery in an intense state of competition for the foreseeable future, keeping prices low for customers and delivery options varied and convenient.