US Post May Venture into Private Sector

October 21 00:00 2011

New York, Oct 20, (RainbowNewsLine.com) – The US Post is exploring options to enter into other lines of business that will help it stay afloat. They have sent proposals to the US government to ask for permission to do so. This has come on the back of an announcement that the US Post will charge customers one more cent to deliver mail.

After the introduction of the email, the postal services faced severe competition. It had become outdated and was referred by people as “snail mail”. It was also expensive as compared to emails. This came as a jolt to the US Post that had concentrated its focus on enlarging its network as much as it could. Now, it finds that its network has become redundant with the falling demand for postal services. The US Post had hired consultants from Wall Street to study its financials and come up with a solution.

The US Post faces even more issues at hand. This is because it cannot discard its network, downsize its employee base or take any major step without government approval which is a major bureaucratic step. It is for this reason that it wants the US government to allow it to enter into other businesses so that it can put resources at hand to more productive use.

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