Business Buzz: Postal Service Officially Backs Off Ending Saturday Mail Delivery

Agency says Congress forced their hand and is imperiling its vitality

The U.S. Postal Service said on Wednesday that it would back away from a plan to stop delivery mail and packages on Saturday. The agency criticized Congress for not allowing them to adopt the cost-cutting proposal. The U.S.P.S.’s board is calling on lawmakers to allow the Postal Service to make its own decision about its future. “It is not possible for the Postal Service to meet significant cost reduction goals without changing its delivery schedule — any rational analysis of our current financial condition and business options leads to this conclusion,” the agency said in a statement release Wednesday. Last week, the agency announced plans to close more than 50 mail-processing centers this year to trim more than $2 million in annual operating costs. The agency also blames that decision on Congress, citing a mandate that requires it to pre-fund 75 years worth of retiree benefits within a decade. It’s still unclear how this is going to affect overall service. Hopefully employees don’t start that whole “going postal” trend again. (New York Times)

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USPS Raises Price of Stamps, Adds Services

A new “global forever stamp” will now be offered for sending mail around the world.

For those few Americans that still mail letters rather than text, email, or Facebook chat, the United States Postal Service has increased the price of stamps. First-class stamps cost $0.46 as of Jan. 27, a penny increase.  Postcards will now cost $0.33. USPS will also offer a “global forever stamp” for $1.10 for sending first-class mail anywhere in the world. According to Patch.com, free tracking will be offered to all packages—including retail Priority Mail and Parcel Post.

USPS has had a tumultuous couple years, consolidating its operations and engaging in various cost-cutting programs to solve its funding problems. The postal service cut nearly 300,000 jobs in 2012 after posting an operating loss of $5.1 billion. (NBC)

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US Postal Service Begins Testing Same-Day Delivery

The program, called Metro Post, will begin holiday deliveries in San Francisco

The US Postal Service is teaming up with retailers this holiday season to offer  same-day delivery. The program, known as Metro Post, will be a premium service for internet shoppers looking for the instant gratification of a store purchase.

The post office will begin the expedited service in San Francisco on Dec. 12 at a price similar to its competitors. If things run smoothly, the program is expected to quickly expand next year to other big cities including Boston, Chicago and New York. It follows similar efforts by eBay, Amazon.com, and most recently Wal-Mart, which charges a $10 flat rate for same-day delivery.

[ALSO READ:Going Postal: USPS to Cut Nearly 30,000 Jobs in 2012]

According to postal regulatory filings, Metro Post is projected to generate between $10 million and $50 million in new revenue from deliveries in San Francisco alone, or up to $500 million, if expanded to 10 cities.

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