- 6 December 2018
- Transport / Logistics Services
According to a report from Donald Trump’s USPS task force, the US postal operator should not be privatised (for now) but needs to refocus its Universal Service Obligation (USO).
Regarding its parcel carrying operation the Trump Taskforce stated, “Given the current structure and capacity constraints of the package market, the Task Force recommends continuing a government-supported package delivery service (at least in the short-term) to ensure that small and medium e-commerce vendors can exist alongside large e-commerce vendors.”
Regarding the USO, this needs to be more clearly defined at USPS: “The generally accepted attributes for defining the USO include specifying the geographic coverage for postal delivery, frequency of delivery, processing standards, mode of delivery, range of required postal products, level of access to post offices, and rules for affordable postal rates.”
To improve this the President’s task force stated, “Clearly define the USO. Provide a targeted definition of minimum, essential postal services, that due to specific social and economic needs have a basis for government protection.”
The entire business model also needs addressing. The current one is outdated “The Task Force believes that the reformed USPS business model must embody a new public policy goal, recognizing that private products and competitive markets increasingly meet the country’s communications and commerce needs. The new policy goal should have the more targeted function of correcting the failures and inefficiencies of these private markets.
“Future postal strategies for products, pricing, competing, and operating should be centered on meeting the needs of mail and package customers who are not reasonably served by commercially available products.”