The U.S. Postal Service is ramping up competition with FedEx and UPS to deliver small parcels in a bid to win over cost-conscious customers.
USPS Ground Advantage is a rebranded service that aims to move packages up to 70 pounds across the country without fees for residential delivery or fuel surcharges. A 10-pound package delivery from Indianapolis to Dallas in three days used to cost $13.59 with USPS, and it would cost $12.87 under Ground Advantage, according to the Postal Service.
The cost of shipping packages has grown so quickly that businesses large and small have looked for ways to save money. At FedEx and UPS, general ground rates have risen 4.9% every year from 2015 to 2021, 5.9% in 2022 and 6.9% in 2023.