Corporate News: FedEx Fends Off Rivals for U.S. Postal

The U.S. Postal Service has been through various structural changes. With recent news about reducing delivery days from six days per week to five days per week, the future of U.S. Postal Service (USPS) is questionable. There are various private competitors in the market today that offer more services and attention to customers. An example would be United Parcel Service (UPS). Amid all efforts to cut operation costs, USPS has managed to form deals with other companies, such as FedEx Corp. to expand its operations. They agreed to a $10.5 billion contract that requires FedEx to ship Express and Priority mail from one U.S. airport to another.

While UPS is a main competitor, FedEx will be able to continue to improve its express air operations. In addition, USPS will also be able to continue its services because they are able to transport mail through a fast, reliable medium such as FedEx. Internet advances have changed the way mail delivery services operate. People are less dependent on delivery of physical mail now that they are able to convey messages through various mediums online. Because of these changes in people’s expectations, delivery contracts are important to USPS and FedEx because the business is not expanding. Fortunately, more jobs may be created as a result of this contract.

 

Written By: Melody Mark

Source:

Sechler, Bob. “FedEx Fends Off Rivals for US Postal Service Contract.” Wall Street Journal. Dow Jones & Company, 23 Apr. 2013. Web. 24 Apr. 2013.

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