Federal Manager's Daily Report

Same-day delivery of goods ordered online is growing rapidly but is still too small to represent either a significant threat or opportunity for USPS, according to an IG report.

“If same-day delivery grows at or above the current rapid pace (up to 50 percent annually), it could disrupt last-mile delivery as we know it. This could have tremendous implications for the U.S. Postal Service and other traditional carriers,” the report said.

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However, even with that rate of growth, same-day delivery accounts for only about 2 percent of parcel deliveries and “consumers are not yet fully embracing same-day delivery. For now, it is largely a niche market that appeals mostly to urban Millennials.”

Further, those services are dominated by crowdsource-type companies which connect independent drivers with customers placing orders and that business model “may be unsustainable because it loses money with each delivery.” Retailers that have started to acquire or develop their own services meanwhile are finding that “the logistical requirements of same-day delivery are often complex and expensive.”