UPS Basic is a competitive response to the USPS media service. It is treated the same as a ground package in transit (it has a 1z label that can be tracked through the system), but we removed all the bells and whistles of our ground service to lower the price. There are very specific requirements a customer must meet to get this service, they cant insure the items like they can on ground, and even through WE can track the package through the system, the only info that can be pasted on to a customer is that the package is in transit and we either delivered it or gave it to the post office.
Many companies out there ship small, inexpensive items in large quantities. They are cheap to produce and day-definite delivery is not important. Ill give you an example from my AE days. I made a cold call on a small company that shipped out diet pills, the ones that are sold on those cheap TV commercials. They shipped out over 1,000 of these shipments a day. 99.9% of the shipments went with the USPS because at under 3 pounds, the post office has a flat rate anywhere in the county. As you know, we charge by zone the farther the shipment has to travel, the more you have to pay. The only time they used us is when a customer had ordered pills and claimed that they never got them. Only then would they us UPS so that they could have a tracking number and make sure that the package got delivered. I tried to convince them that they needed guaranteed delivery they didnt. I tried to convince them that if they shipped everything with UPS that they would have proof of delivery so that they would not have to pay for another bottle of pills because their customers couldnt say I didnt get the shipment They said that the cost difference between UPS and the post office averaged $2 dollars and a bottle of the pills only cost them $1 to manufacture. I tried to point out that every package was insured they pointed out it would be a waste of money to attempt to recover $1 dollar for every package lost or damaged. Our ground product was not a good fit, but if we had had basic back then, I could have won this business away from the USPS.