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U.S. Postal Service Cuts Rates, Eyes Bigger Share Of Ecommerce Delivery Market

September 4, 2014: 12:00 AM EST
The U.S. Postal Service announced lower postage and delivery prices aimed at attracting big ecommerce companies and recover business it has previously lost to parcel delivery services firms FedEx Corp. and United Parcel Service Inc. Despite opposition from its rival delivery providers, the Postal Service gained regulatory approval in August 2014 to cut prices by as much as 58 percent on some Priority Mail packages for deals involving at least 50,000 parcels a year. While the Postal Service claimed its high prices were limiting its ability to compete, both UPS and FedEx said the agency is leveraging its near-monopoly status to expand its share of the ecommerce delivery market. In addition to lower shipping rates, USPS is also considering grocery delivery for Amazon.com Inc. as part of its efforts to attract new business.
Laura Stevens, "U.S. Mail Cuts Prices, Chafing UPS and FedEx", The Wall Street Journal, September 04, 2014, © Dow Jones & Company, Inc.
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