“We had no choice. We had to get moving. We lost $10 billion last year,” he says. “Our service standards were eroding and would continue to erode as mail volume came down.” Ron Bloom, chairman of the USPS’s board, agrees. “
Over my career, I’ve been involved with a lot of companies who’ve died slowly,” he says. “And, bluntly, that’s what the Postal Service was doing.”
It’s the same killer that got
Blockbuster : the internet. Since 2006 total mail volume
is down 39%. There’s less mail than in 1984. Yet the number of delivery points rises by
more than a million a year. Put differently, the USPS says in 2006 there were 5.6 daily pieces of mail per delivery point. Last year: three. By 2030 the estimate is 1.7. The USPS is meant to be self-sufficient, but its losses since 2007 run to $87 billion, with $160 billion more projected this decade.
The question for the USPS is on what terms this will come to a stop. For now Congress has mandated six-day delivery. Universal service is also sacrosanct, so the USPS
still runs mules to a village at the base of the Grand Canyon. Trying to make the Postal Service solvent, while coloring inside the lines drawn by Congress, is no easy feat.