The U.S. Postal Service this week launched a new service called Ground Advantage that seeks to win back some of the parcel volume lost to FedEx and UPS when the major carriers insourced much of what they once handed off to USPS Parcel Select Ground, which is being folded into the new offering.
Ground Advantage promises 2-5-day delivery within the continental U.S., compared to the previous service level standard of up to 8 days for its previous ground offerings. The other services being eliminated are Retail Ground and First-Class Package. Prices will be lower compared to the legacy services, with the USPS looking to the new offering as a revenue driver to bolster its challenged economics.
Ground Advantage will handle packages up to 70 lbs., focused on those up to 25 lbs., whereas before its ground services had a sweet spot of 5 lbs. or less. This makes it more attractive to a much wider swath of shippers, and more competitive with the other majors.
Asked how this can be achieved, the USPS pointed to its logistics, facilities and fleet upgrades, as well as converting 125,000 workers from part time to full time. On the logistics side, for instance, it is consolidating mail and package shipments to gain efficiency.