Parcel and Postal Technology International
  • News
    • A-E
      • Automation
      • Business Diversification
      • Construction / Development
      • Cross-border
      • Delivery
      • E-commerce
      • Expo
    • F-O
      • Freight
      • IT & Systems
      • Last Mile
      • Lockers / PUDO
      • Logistics
      • Mail
      • Operations
    • P-R
      • Packets
      • Parcels
      • Peak
      • Retail
      • Returns
    • S-Z
      • Sorting Systems
      • Staff / Personnel
      • Sustainability
      • Technology
      • Vehicles / Fleet
  • Features
  • Online Magazines
    • March 2025
    • September 2023
    • June 2023
    • March 2023
    • December 2022
    • SHOWCASE 2019
    • Archive Issues
    • Subscribe Free!
  • Opinion
  • Videos
  • Analysis
  • Awards
    • 2025 Awards
    • Previous Winners
  • Supplier Spotlight
  • Parcel + Post Expo
LinkedIn YouTube Twitter
  • Sign-up for Breaking News Emails
  • Meet the Editors
  • Contact Us
  • Media Pack
Subscribe
LinkedIn Facebook
Parcel and Postal Technology International
  • News
      • Automation
      • Business Diversification
      • Construction / Development
      • Cross-border
      • Delivery
      • E-commerce
      • Expo
      • Freight
      • IT & Systems
      • Last Mile
      • Lockers / PUDO
      • Logistics
      • Mail
      • Operations
      • Packets
      • Parcels
      • Peak
      • Retail
      • Returns
      • Sorting Systems
      • Staff / Personnel
      • Sustainability
      • Technology
      • Vehicles / Fleet
  • Features
  • Online Magazines
    1. December 2024
    2. September 2024
    3. June 2024
    4. March 2024
    5. SHOWCASE 2019
    6. Subscribe Free!
    Featured
    April 2, 2025

    In this Issue – March 2025

    Online Magazines By Web Team
    Recent

    In this Issue – March 2025

    April 2, 2025

    In this Issue – December 2024

    December 5, 2024

    In this Issue – September 2024

    September 19, 2024
  • Opinion
  • Videos
  • Analysis
  • Awards
    • 2025 Awards
    • 2024 Award Winners
    • 2023 Award Winners
    • 2022 Award Winners
    • 2021 Award Winners
    • 2020 Award Winners
    • 2019 Award Winners
    • Previous Winners
  • Supplier Spotlight
  • Parcel + Post Expo
LinkedIn Facebook
Subscribe
Parcel and Postal Technology International
Analysis

How PUDOs and lockers can save the USPS

Opinion WritersBy Opinion WritersOctober 22, 20195 Mins Read
Share LinkedIn Twitter Facebook Email
usps

The USPS needs to innovate in the last mile. It could be best-in-class, by leveraging its current network and adding lockers and new delivery solutions. Analysis from Ian Kerr (Postal Hub Podcast) and Marek Różycki (Last Mile Experts).

The US Postal Service is under pressure in parcel delivery. FedEx is starting to pull volumes out of the Parcel Select service (where the USPS does the last mile for other carriers such as FedEx and Amazon), and Amazon is pushing more of its parcels to its own delivery service partners.

Like many postal operators around the world facing falling letter volumes, the USPS is looking to grow its parcel business. But if FedEx, Amazon and others stop using USPS services for urban areas, the USPS will be left with less profitable deliveries.

This is the ‘carrier of last resort’ problem – and the USPS isn’t alone. Commercial carriers often don’t deliver to rural or remote areas, and those that do impose a surcharge. Postal operators, with their universal service obligation compelling them to deliver letters to all corners of the nation, also step in to make sure customers in rural and remote areas receive parcel deliveries as well.

So how can the USPS compete with its commercial competitors? Let’s consider some of the options already on the table.

Parcel lockers and PUDOs

The USPS has a dense network of some 31,000 retail points and a limited network of lockers – called gopost – but the locker network isn’t dense enough or sufficiently widespread to make an impact and is not fully integrated with access points to create a market leading out of home alternative.

In September, the USPS issued a Request for Information for parcel lockers. Could this signal a serious return to parcel lockers by the USPS? Here are three things the USPS can do to make them work:

• Better leverage the existing post office network to create a first-class PUDO (pickup, drop-off) network.

• Build an integrated PUDO and locker network at scale – before its competitors (that is, Amazon) beats it to the punch.

• Open the network to other carriers to generate more volume (and revenue, of course) as well as support better utilization for lockers

Meanwhile, Amazon is pressing forward with its parcel locker network in the USA.

Drones

The USPS has also issued an RFI for drones capable of delivering the mail. This is not a serious solution. Drones are appropriate for specific use cases, such as delivering to hard-to-reach zones, but it is hard to see how delivering mail via drone will help the USPS compete in the last mile.

The USPS has been trialling autonomous trucks for long-haul operations, but large-scale implementation is still far off. As for autonomous ground vehicles (delivery robots, or AGVs) in the last mile, they may yet have a role for same-day delivery or helping add capacity in some delivery areas.

Informed Delivery

Informed Delivery is an online service that allows customers to preview their mail and manage packages scheduled to be delivered.

It has many interactive delivery management (IDM) features, allowing customers to reschedule delivery, leave delivery instructions for the driver, track parcels, and manage delivery notifications.

“Informed Delivery is one of the most successful innovations from the USPS in the last five years,” said Mark Fallon, president and CEO of the Berkshire Company. “It currently has over 19 million subscribers, representing a 12% saturation rate of all delivery points. The goal over the next 12 months is to more than double that – 40 million subscribers, or 30% of eligible delivery points.”

Now the USPS is adding an electronic signature service to Informed Delivery that removes the need for Informed Delivery customers to physically sign for deliveries requiring a signature.

The USPS carrier will be able to deliver the typical package on the first attempt to the delivery address without having to arrange for redeliveries.

“Adding electronic signatures is just one of several improvements to the Informed Delivery platform shippers can expect,” added Fallon. “In addition to the current promotion for creating Informed Delivery campaigns, the USPS is re-engineering the platform to enhance the sign-up options and new campaigns around packages.”

Staying competitive?

While the USPS is beset by many problems, including problems created by politicians, it has the potential to build an even better last-mile parcel delivery network.

Amazon isn’t sitting around waiting for its delivery partners to improve. Rather, it’s spotting gaps in the market or areas that need improvement and building its own best-in-class delivery solutions.

The USPS cannot sit on its hands. It must enhance its existing delivery network, continue to build up Informed Delivery into a fully fledged IDM tool capable of rivaling Amazon, and create new customer-centric parcel delivery options.

If it couples IDM with a dense and open PUDO/locker network, driving significantly better first-time delivery rates compared with residential ‘to door’ delivery, as well as better stop efficiency, we see a brighter future for the US national carrier. Let’s see if USPS has the vision and drive to make this happen.

 

Ian Kerr is the founder and host of the Postal Hub Podcast, the weekly podcast for the postal and delivery sectors.

Marek Różycki is managing partner at Last Mile Experts, specializing in CEP and e-commerce last-mile advisory.

Share. Twitter LinkedIn Facebook Email
Previous ArticleToward carbon neutral delivery: five steps to help you get there
Next Article Quick quiz: Australia Post’s new hub

Related Posts

Analysis

ANALYSIS: From needlessly oversized boxes to labelling, how can parcel packaging be improved?

May 8, 20251 Min Read
Analysis

ANALYSIS: Will Allegro’s partnership with DHL and Orlen Paczka give InPost a run for its money?

May 1, 20251 Min Read
Analysis

ANALYSIS: Royal Mail are using postboxes for small parcel delivery. Should other national posts do the same?

April 24, 20251 Min Read

Receive breaking stories and features in your inbox each week, for free


Enter your email address:


Latest News

Whistl to provide e-commerce fulfillment services to Tesco F&F Online

May 13, 2025

NZ Post’s Auckland Processing Centre becomes fully operational

May 13, 2025

XPO Logistics boosts cross-border capacity with state-of-the-art container trailers

May 13, 2025
Getting in Touch
  • Contact Us / Advertiser
  • Meet the Editors
  • Download Media Pack
  • Breaking News Emails
Our Social Channels
  • Facebook
  • LinkedIn
Supplier Spotlights
  • OMNIC
  • Cookie Policy
  • Privacy Policy
  • Terms & Conditions
  • Notice & Takedown Policy
  • Site FAQs
© 2025 UKi Media & Events a division of UKIP Media & Events Ltd

Type above and press Enter to search. Press Esc to cancel.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.

CookieDurationDescription
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Advertisement" category.
cookielawinfo-checkbox-analytics1 yearSet by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Analytics" category.
cookielawinfo-checkbox-functional1 yearThe GDPR Cookie Consent plugin sets the cookie to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary1 yearSet by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Necessary" category.
cookielawinfo-checkbox-others1 yearSet by the GDPR Cookie Consent plugin, this cookie stores user consent for cookies in the category "Others".
cookielawinfo-checkbox-performance1 yearSet by the GDPR Cookie Consent plugin, this cookie stores the user consent for cookies in the category "Performance".
elementorneverThe website's WordPress theme uses this cookie. It allows the website owner to implement or change the website's content in real-time.
JSESSIONIDsessionNew Relic uses this cookie to store a session identifier so that New Relic can monitor session counts for an application.

Functional

Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.

CookieDurationDescription
__cf_bm30 minutesCloudflare set the cookie to support Cloudflare Bot Management.

Analytics

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.

CookieDurationDescription
CONSENT2 yearsYouTube sets this cookie via embedded YouTube videos and registers anonymous statistical data.
uidsessionThis is a Google UserID cookie that tracks users across various website segments.
vuid1 year 1 month 4 daysVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos on the website.
_ga1 year 1 month 4 daysGoogle Analytics sets this cookie to calculate visitor, session and campaign data and track site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognise unique visitors.
_ga_*1 year 1 month 4 daysGoogle Analytics sets this cookie to store and count page views.

Advertisement

Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.

CookieDurationDescription
OAGEOsessionOpenX sets this cookie to avoid the repeated display of the same ad.
OAID1 yearCookie set to record whether the user has opted out of the collection of information by the AdsWizz Service Cookies.
VISITOR_INFO1_LIVE5 months 27 daysYouTube sets this cookie to measure bandwidth, determining whether the user gets the new or old player interface.
YSCsessionYoutube sets this cookie to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the user's video preferences using embedded YouTube videos.
yt-remote-device-idneverYouTube sets this cookie to store the user's video preferences using embedded YouTube videos.
yt.innertube::nextIdneverYouTube sets this cookie to register a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverYouTube sets this cookie to register a unique ID to store data on what videos from YouTube the user has seen.

Others

Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.

CookieDurationDescription
VISITOR_PRIVACY_METADATA5 months 27 daysDescription is currently not available.

SAVE & ACCEPT
Powered by