Gannett Explores Parcel-Delivery Business

According to an article in the Wall Street Journal, Gannett, the owner of USA Today and a nationwide network of small and mid market newspapers, may be considering getting into the package delivery business. It wouldn’t be easy, and there are financial issues, including tax breaks the company might lose.  Those tax incentives were one reason the Tribune Company cancelled a similar venture last year.

If Gannett can find a way around those issues, however, the Journal story says the benefits to the company could be substantial:

If newspaper publishers such as Gannett are able to overcome the hurdles, they would have the advantage of both lower delivery costs and a huge network—something that could pose competition to United Parcel Service Inc. and FedEx Corp. While print subscriptions have fallen in recent years, every major city neighborhood still has newspaper trucks out making early-morning deliveries, putting them close to e-commerce customers and making them a potentially attractive option for shippers.

Read more: Gannett Explores Parcel-Delivery Business – WSJ