General Discussion
In reply to the discussion: USPS versus Republicans lies... [View all]TheBlackAdder
(28,183 posts).
That's called Final Segment Delivery. It's the way Companies Socialize Costs and Privatize Profits.
FedEX and UPS do not have the vehicles or manpower to perform many final segment deliveries.
What they do is lobby to cripple the USPS so they aren't a competitive threat to their next day services, but keep them viable enough to have the USPS perform the most costly portion of package delivery--that being the distribution center to the home or office. The post office makes one cent per package. That's right, just one cent profit.
The private carriers pocket the savings. Many USPS centers have a FedEx and UPS drop box and perform the receiving and sorting of packages, especially local ones. They will white label the packages, so you won't even know the private carriers never even touched the package and USPS did everything.
So, the private carriers use the quasi-government USPS to save money and stay viable, since neither of them could deliver the packages without huge equipment and labor expenses. They do this just a penny over USPS costs. But, they privatize the the profits that they bilk from their customers.
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