UPS and US Postal Service are two of the biggest carriers in the United States. While many people may think that these companies compete with each other, they actually work together.
Yes, UPS and USPS are technically competitors in the shipping industry, but they also agree to work with each other.
Here’s Why USPS & UPS Work Together:
USPS and UPS work together to provide mail solutions, to both domestic and international locations, more efficiently at lower costs. These integrated solutions would require less prep time, which results in more reliable deliveries and consistent transit times at better and more affordable rates.
Do USPS & UPS Have An Official Partnership?
US Postal Service and UPS working together is a great way to improve their services while offering lower shipping costs to the customer and reducing costs in other aspects of their businesses.
These two companies have an official partnership that they announced in 2012.
They announced this official partnership through a video that they posted on YouTube. In the video, UPS chief executive officer Scott Davis and USPS CEO and postmaster general Patrick Donahoe discussed the ideas that made this partnership happen.
By collaborating, USPS and UPS have made it possible to provide better services to their customers while reducing costs. This partnership also aimed to make everything more sustainable by minimizing their carbon footprints in their respective supply chains.
The goal is to deliver mail efficiently at the lowest possible cost while being more sustainable to minimize environmental impact. This partnership is aligned with the two companies’ vision of a cleaner and greener environment.
UPS is one of the largest shipping companies in the world. It is also a leading provider of logistics and transportation services, as it operates in more than 220 countries and territories.
Meanwhile, the US Postal Service is the largest mail service in the world. It caters to more than 150 million addresses in the United States, almost 40% of all the total mail worldwide.
Even though these two companies are competitors, they still work together and are each other’s customers.
Why Does UPS Give Packages To USPS?
UPS gives packages to USPS when the delivery location is not profitable for UPS.
By law, USPS is required to deliver anywhere in the United States, while UPS isn’t. So if the delivery location is too remote that it’s no longer profitable, UPS can hand over the package to USPS because the latter makes deliveries there anyway, regardless of whether it would profit.
It is a hybrid shipping arrangement between these two companies which is a good way of working together since not all areas of the US are serviceable by UPS. Plus, UPS does not have access to mailboxes and PO boxes.
Here are the benefits when a UPS package is handed over to USPS for delivery:
Benefits for USPS:
- USPS gets increased volume and more revenues from the bulk of UPS packages they take.
- There is less effort needed on the part of USPS.
- This is because UPS is in charge of moving and the initial handling of the packages by picking them up from the customer and bringing them to the post office.
- USPS generally spends less money because UPS moves the packages before they are finally handed over to the post office for local delivery.
- There will be less stress on the USPS supply chain.
- Even if it is a big company, the USPS supply chain is not equipped to handle the volume of all people who do online shipping, especially during the holidays. Allowing the UPS network to handle these packages makes it easier for USPS.
Benefits for UPS:
- Transportation costs are less expensive.
- Since USPS goes to all addresses anyway, it is more cost-efficient for UPS to hand over the packages to USPS for delivery rather than have UPS trucks go to these locations.
- UPS gets a discount on USPS services, and they end up making a direct profit.
- UPS is able to provide better and faster delivery services through USPS.
- This is because USPS operates daily except on Sundays, even though it may not be profitable for them.
- It gives UPS customers more delivery options.
- UPS cannot deliver to mailboxes, PO boxes, and certain areas to which only the US Postal Service has access. By working together, UPS gets more business and revenues as they can acquire customers who could have chosen USPS.
Benefits for the Customer:
- Shipping costs are generally lower.
- Since UPS gets a discount on USPS services, it means that customers are also charged less compared to if they availed of First Class or Priority Mail directly at the USPS website.
- Delivery is generally more reliable.
Benefits for the Receiver:
- If the receiver is the one paying for shipping, it also means they have the option to select more affordable shipping services.
- They can receive UPS packages in their mailbox and PO box when USPS delivers them.
Do USPS & UPS Share Delivery Areas?
The US Postal Service and UPS are two of the biggest mailing companies and logistics providers in the US. Both of these companies have services in all 50 states.
Since UPS and USPS have a wide scope of serviceable areas, they share some delivery areas.
However, there are certain areas in the country where UPS does not operate even though USPS does. This is why UPS hands over some mail and packages for USPS to deliver.
Will USPS Ship UPS Packages?
Since these two companies work together to provide better services, USPS will ship UPS packages that are handed over to them.
Here are the reasons why USPS may ship your UPS package:
- It may be cheaper to have the package brought to the post office so that USPS could ship it, especially if the recipient’s location is in a remote area.
- The delivery address may be hard to reach.
- This applies to small communities where narrow roads would make it impossible for a UPS truck to drive through.
Once USPS takes over the delivery, they will update the tracking number in the system so you can still check its status in real time. Regardless, these two companies get the package to the customer in the most efficient way possible.
Will UPS Ship USPS Packages?
While the US Postal Service can ship UPS packages, it usually does not work the other way around.
In general, UPS does not ship USPS packages. However, if the USPS packages need to be moved from one city to another, the packages are handed over to UPS because USPS does not have a plane.
This is to transport the packages faster between cities.
Once the packages have been moved to the destination city, they will be brought to the local post office for sorting before they are dispatched. Then the home delivery will still be done by USPS.
Will USPS Pick Up A UPS Package?
USPS will not pick up your UPS package.
Even with their partnership and even if the package does end up being handed over to the post office, USPS is still not authorized to pick up UPS packages directly from the customer. And they are not going to even if you ask.
Only UPS can pick up packages from a customer. However, as a customer, you can initiate the drop-off of UPS Mail Innovation packages at a USPS location or at your local post office, and it will be accepted.
Will UPS Pick Up A USPS Package?
If the shipping label was generated through the USPS website, the package can only be picked up by a USPS postman.
UPS will not pick up a USPS package. Only USPS mail carriers are allowed and authorized to pick up a USPS package.
Even though UPS and USPS have an official partnership, the customer cannot choose to have their packages delivered by USPS if the shipping label was generated on the UPS website.
Only UPS and USPS can decide when the UPS packages will be handed over to USPS for home delivery.
Sources:
USPS And UPS Announce Partnership