The rate UPS pays the USPS for this service are based on Parcel Select rates. A 1-lb and 2-lb Parcel Select rate is $1.85. You really think UPS ground residential and Fedex Home Delivery can compete with that rate?
If you work at a UPS facility near any of these buildings, they have volume that used to be in the UPS network and are currently working on taking more from the UPS network.
This is the reality of the economy. Companies are not willing to pay Fedex Home Delivery and UPS Ground residential rates and the various surcharges. Fedex SmartPost is growing like crazy and driving the ground growth at the company--read any of their quarterly reports or listen to their earnings announcments. It is reality. You can either accept the fact that UPS needs to offer a similar service that competes on rates or let Fedex take this volume and the jobs that go with it. It is reality.
Surepost packages are picked up, sorted and delivered by UPS Teamster employees. Fedex subcontracts out most of the pickup from the customer and delivery to the post office. They have a lower cost structure than UPS. It is reality.
Waiting for the USPS to implode while Fedex Smart Post grows and grows is not a smart business decision. The USPS will always exist--maybe some offices will close and maybe Saturday delivery will go away but the USPS will always exist.
You can choose to accept reality or ignore it, but it does not change the facts.
So what does UPS get to take the package from the shipper to the Post Office?
Add that sum plus $1.85 per package for each package that we already have a delivery for, and there's many in densely populated urban settings, and you an opportunity lost.
Now add in the ones going to the house next door or across the street to another delivery...?
We've seen this company's obsession with GPS technology when it comes to discipline, let's put it to work here.
I've never railed against this program in rural settings, but in tight, densely populated urban settings, the program raises red flags of other agendas by the company, hence the title of this thread.
Sometimes you have to read between the lines on these quarterly reports and earnings statements, in conjunction with front line experiences, to get "the big picture".
You can choose to drink the
brown koolaid, but it does not change the facts.