alt Hacker NewsThe USPS is losing money hand over fist delivering the unwanted junk mail and Christmas cards we throw away once the tree is put away.
I don't think this will stop the bleed, but maybe it'll help that they are charging??
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The USPS is losing money hand over fist delivering the unwanted junk mail
The fact that you think the Postal Service loses money delivering junk mail shows that you don't have any idea what's going on.
Junk mail is a massive revenue source for the USPS. According to the congressmen I've spoken with (Yes, I actually have done that), junk mail is hugely revenue positive, which is why it's allowed to continue.
USPS' financial problems largely have to do with pensions and other non-delivery issues.
https://www.gao.gov/blog/us-postal-service-losing-money-what...
blame EDDM, aka junk mail, aka physical SPAM that you can not opt out of. its a jobs program that I suppose also benefits the paper product recycling industry
i have a hole in my pool... thousands of gallons per day are draining into the neighbors yard
oh, so are you having someone come out to patch the hole and fix it?
no, the hole is still there. we are spending 3k per month to get a water delivery truck to refill the pool.
Structural changes are required for then USPS to be financially stable. Chief among them is modifying the Universal Service Obligation (USO).
For far too long, private shipping/logistics firms like UPS & FedEx unfairly take advantage of the requirement by the USPS to deliver mail six days a week to over 160 million addresses at uniform, affordable rates. UPS/FedEx will receive the package and do the long haul. But then instead of driving the package to a final residential doorstep themselves (incurring high residential and fuel surcharges), they drop it off at a local USPS branch or regional hub. USPS letter carriers complete the final-mile delivery to the recipient's home or P.O. Box. It's literally part of their business model. UPS calls it 'UPS Ground Saver' and FedEx calls it 'FedEx Ground Economy'.
These hybrid services typically cost 20% to 40% less than standard UPS Ground or FedEx Ground. It takes longer to ship but UPS/FedEx bypass the steep residential delivery fees (often $6.45–$6.50+ per package) that private carriers charge for dropping off at houses rather than businesses. Also, it's the only way to deliver to PO Boxes because standard UPS and FedEx ground services don't do directly.
This is classic example of capitalism where private companies 'keep profits and socialize losses'. The 5% annual dividend paid by FedEx every year to shareholders is paid for by American tax-payers funding the last-mile delivery of packages at dirt cheap rates.