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An Assessment of USPS’ Negotiated Service Agreements and Platforms’ Direct Entry in Delivery

In: The Economics of the Postal and Delivery Sector

Author

Listed:
  • Victor Glass

    (Rutgers University)

  • Antonio Nicita

    (Rutgers University
    LUMSA University)

  • Stefano Gori

    (LUMSA University)

Abstract

This paper starts from USPS’s Negotiated Settlement Agreements (NSAs) to understand the evolution of the postal sector in the US linked to the growth of e-commerce. It goes on to explore reasons for platforms’ entry into last-mile delivery and its likely consequences. As a backdrop, the United States Postal Service (USPS) is under financial pressure. Over the period FY 2006 through FY 2016, the Commission noted that the Postal Service suffered a cumulative net loss of $59.1 billion (PRC, 2019a, p. 6). On 6 April 2018, President Trump stated on Twitter, “Only fools, or worse, are saying that our money losing Post Office makes money with Amazon,” Trump tweeted. “THEY LOSE A FORTUNE, and this will be changed.” The president’s broadside launched a full-scale news media debate that produced mainly opposing opinions (see for example, Banker, 2017 and Segarra, 2018).

Suggested Citation

  • Victor Glass & Antonio Nicita & Stefano Gori, 2022. "An Assessment of USPS’ Negotiated Service Agreements and Platforms’ Direct Entry in Delivery," Topics in Regulatory Economics and Policy, in: Pier Luigi Parcu & Timothy J. Brennan & Victor Glass (ed.), The Economics of the Postal and Delivery Sector, pages 67-80, Springer.
    • Handle: RePEc:spr:topchp:978-3-030-82692-5_5
    DOI: 10.1007/978-3-030-82692-5_5
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