OIG: USPS “did not properly implement” failed same day delivery pilot

usps_metropostThe USPS has ended its test of same-day delivery service in the San Fransisco Bay Area after the service attracted a grand total of 95 packages over a five month period. The USPS had expected at least 200 deliveries per day. The Inspector General’s office released a review of the failed project on Friday:

Background:

In December 2012, the Postal Regulatory Commission approved pilot testing of the U.S. Postal Service’s Metro Post Same Day Delivery concept in the San Francisco District’s 941 ZIP Code areas. This service enables customers to order products online by 2 p.m. from partnering retailers and receive their shipments the same day between 4 p.m. and 8 p.m. Carriers use smartphones that provide audio and visual package pickup and delivery routing directions that are integrated with the Postal Service’s Dynamic Routing System Google Maps© application. Retailers and customers use the Postal Service’s Track and Confirm application to track their packages.

The Postal Service began the Metro Post Same Day Delivery pilot to gain a competitive edge in parcel delivery by offering customers a convenient and flexible delivery alternative. The Postal Service planned to gather sufficient data during the pilot to determine whether to continue this delivery service.

What the OIG found:

The Postal Service did not properly implement the pilot. They did not have sufficient participation from the six selected retailers to achieve the required daily minimum target of 200 packages per delivery day. Only 95 packages were sent by the six participating retailers over a 5-month period. Implementation in the San Francisco District was based on the expectation of agreements with several large retailers. However, only one large retailer agreed to participate in the pilot, and later withdrew prior to implementation due other operational priorities. The Postal Service was left with small local retailers that could not produce the target daily package volume. As a result, the Postal Service earned $760 and spent $10,288, with a net loss of $9,528 on the pilot.

  • mailbox

    that sounds pretty much normal to me…spend $10,000 to earn $700. THis is the only place that I know that will step over a dollar bill to pick up a shiny new penny.

    • Rupert_Pupkin

      “that sounds pretty much normal to me…spend $10,000 to earn $700.”
      Sounds like the USPS needed bigger trucks to handle the traffic,,,

  • Liam Skye

    Everybody knew it was going to be a dog. The OIG is wrong – the problem was not in the implementation, it was in the concept itself.

  • David Bartholomew

    At least they tried something. How many ideas get tried for every one that succeeds?

  • Milly

    Bonus party

  • Knucklebuster48

    Another program destined to fail from day one. Post Office had no back up plan to cover expenses!Yet the Post Office still gives big mailers a discount on what they mail? Go figure! It seems like no pressure was exerted on the companies so that the target would be reached! Like maybe dropping their discounts if they didn’t reach the quota?
    When are they going to smarten up they are losing 3-4 million dollars a year by not shipping alcoholic beverages like UPS and FEDEX! When there is money to be made they drag their feet and the Congressional Oversite Committee just wants us to fail!