Should the USPS Diversify into Nonpostal Markets?

Tad DeHaven

8/1/2012 12:01:00 AM - Tad DeHaven

One possible solution offered up for the struggling U.S. Postal Service is to allow it to diversify into nonpostal commercial markets (e.g., insurance, logistics, banking, etc). After all, the share of revenue generated from diversified products at foreign posts has been on the rise and in many cases now accounts for the majority of a post’s revenue.

However, a new paper from postal expert Michael Schuyler concludes that the USPS entering “new nonpostal commercial ventures would probably end badly.” Here are some of the important takeaways from Mike’s paper:

In sum, it’s a really bad idea. Unfortunately, policymakers in Washington have a soft spot for bad ideas.