Amazon's newly inked Sunday delivery deal with the USPS is expected to give the online retail giant a leg up against its major competitors while giving the ailing federal mail service a boost.
The U.S. Postal Service will deliver Amazon packages on Sundays in the Los Angeles and New York metropolitan areas at no additional charge. Amazon and the Postal Service said the agreement will include Dallas, New Orleans, Phoenix, and other cities next year, according to the Los Angeles Times
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United Parcel Service (UPS) does not deliver on Sundays and FedEx's Sunday deliveries are available with "limited options."
USPS spokeswoman Sue Brennan told the Times that while letter mail continues to decline, package delivery has been "increasing in double-digit percentages."
She said the Amazon deal is expected to increase its Sunday delivery business "considerably," according to the Los Angeles Times.
Postal Service officials told USA Today
that they expect to deliver 420 million packages this holiday season, a 12 percent increase since last year. The organization lost $15.9 billion last fiscal year and expects to lose another $6 billion this year.
In September, the USPS announced that it would ask for an increase in the first-class stamp from 46 cents to 49 cents
USA Today reported that Amazon has been expanding its services by building new warehouses around the world so it can move products more quickly.
"The three big pieces of growth for us are selection, lower prices, and speed," Dave Clark, vice president of worldwide operations and customer service for Amazon, told USA Today. "Adding an additional day is all about delivery speed. An Amazon customer can order a backpack and a Kindle for their child and be packing it up on Sunday for school on Monday."
For its fledgling grocery delivery business AmazonFresh, Amazon added metropolitan Los Angeles for delivery along with its current Seattle. Amazon CEO Jeff Bezos told shareholders in October that AmazonFresh has not turned a profit yet, according to the Wall Street Journal
USA Today stated Amazon will still need services like the Postal Service in the long run, which is the only delivery service that reaches every address in the nation and post office boxes.
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