Competition Growing in Parcel Delivery but USPS Still Has Some Advantages, Says Report

The USPS has lost a substantial portion of that business to alternative delivery models in recent years but it still has some advantages over them that it can use to its benefit, an inspector general report has said.

The report said that the market share for USPS and the other two large traditional parcel deliverers, FedEx and UPS, declined from 85 to 60 percent over 2019-2025 as “A perfect storm of surging ecommerce volumes, major regulatory and trade policy changes, and the emergence of on-demand (gig) labor models created a market opportunity for alternative carriers.”

Those included not only delivery services such as Amazon—which last year passed the Postal Service as the largest parcel carrier by volume—but also physical and online retailers expanding their own delivery networks, cross border ecommerce specialists handling international ecommerce shipments, and regional, tech-driven logistics providers.

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