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Is It Time to Revisit the USPS’ Strategy for Financial Sustainability?

In: Postal Strategies in a Digital and Green Transition

Author

Listed:
  • Victor Glass

    (Finance and Economics Department, Rutgers Business School)

  • Stefano Gori

    (Finance and Economics Department, Rutgers Business School)

Abstract

The main culprits for continuing loss of United States Postal Service (USPS) losses are both familiar and new. Mail volumes continue their secular decline, most notably in first-class and marketing mail, and in periodicals as well. The most troubling decline is in shipping and packages, which were rapidly growing with the growth of the online economy. If package delivery by USPS stagnates because of competition and price increases are constrained by competition, in long term the USPS is in deep trouble. The USPS will need to find new markets that have profit potential. Otherwise, the USPS will require large infusions of funds from the government, which at this point in time, is politically unacceptable. European Post strategies offer insights into a path forward for the USPS. The authors add their own product recommendations to improve the financial sustainability of USPS.

Suggested Citation

  • Victor Glass & Stefano Gori, 2026. "Is It Time to Revisit the USPS’ Strategy for Financial Sustainability?," Topics in Regulatory Economics and Policy, in: Anna Renata Pisarkiewicz & Timothy J. Brennan & Leonardo Mazzoni & Victor Glass (ed.), Postal Strategies in a Digital and Green Transition, pages 75-85, Springer.
    • Handle: RePEc:spr:topchp:978-3-032-00502-1_6
    DOI: 10.1007/978-3-032-00502-1_6
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