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Will the USPS at-home grocery delivery service take off?
The United States Postal Service is betting on Amazon to help lead the way with at-home grocery delivery. While the USPS hasn't yet put all of its financial weight behind its partnership with the e-commerce giant, it has already begun testing it out in San Francisco, The Wall Street Journal explained. It's a matter of providing an additional service to customers, making it easier for them to access the goods they want without leaving the comfort of their home.
Bringing convenience
Similar to the way mailing software takes care of virtually every need a business has in ensuring the direct mail items will get to the intended recipient, Amazon is likely hoping the resources of the U.S. Postal Service will facilitate rapid delivery.
The proposal filed with the Postal Regulatory Commission includes information about a two-year testing period for the grocery distribution program, which could expand beyond working exclusively with Amazon. The USPS hopes to begin carrying out the initiative by late October. The Washington Post explained the government agency would collaborate with retailers to deliver food items, both fresh and prepackaged, to residential areas in the early morning - between 3 a.m. and 7 a.m.
Recipients end up with an insulated tote bag carrying their goods, and these may be refrigerated depending on the contents, the WSJ wrote. The food items would arrive at a USPS facility between 1:30 a.m. and 2:30 a.m., get sorted and then the carrier would determine the best route. Mobile tracking hardware and software will also likely be used to make the process go more smoothly.
A larger cash injection
One of the primary arguments the USPS is making in support of the plan is that it could generate as much as $10 million annually. During the test run in San Francisco, the Postal Service indicated it has carried out an average of 160 grocery deliveries daily to locations across the city and surrounding areas. Although there's been no price tag set on how much the service will cost retailers, the USPS hopes to leverage the service to generate more business. The agency cited the growth of at-home grocery services as one of the reasons behind the decision.
The specific relationship with Amazon would build on past collaborations between the two organizations. Late last year, they came together to participate in Sunday delivery program that did away with additional convenience fees.
Time will tell if the strategy will work out for the Postal Service. New projects always come with a capital investment, which may prove to be too expensive for the government agency.
