The service, which used to rely on the USPS before a breakup this year, posed challenges for UPS in Q2 due to higher-than-expected costs.
- UPS has “reengaged” with the U.S. Postal Service on a potential delivery arrangement for UPS Ground Saver, a service that once relied on the agency, CEO Carol Tomé said on an earnings call Tuesday.
- UPS Ground Saver, formerly known as UPS SurePost, is focused on providing low-cost shipping in exchange for slower delivery speeds. The offering used to frequently hand off millions of packages to the U.S. Postal Service before UPS this year opted to keep the volume in-house due to cost and reliability concerns.
- “There’s new leadership there, they have excess capacity, so we’re working through a number of different positions on Ground Saver,” Tomé said. “We don’t know the outcome of that yet, but we expect to know that hopefully in the quarter.”
Spare capacity, my ass. Look at many offices, there are vacant routes, carriers out long term on illness or injury, hardly any subs, and thus routes that sit day after day before getting delivery Most sizable cities here in Montana that have experienced a lot of population growth in the past years, mail sits multiple days at a time before there is enough capacity to get it delivered. Contract routes bid to assist on package delivery for rural routes because USPS won’t pay what is needed to make it make sense for locals in these more expensive cities in Montana (I’m talking about Missoula, Helena, Bozeman, and Kalispell) to get locals into fill these jobs.