PRC Releases Opinion on Eliminating Saturday Postal Delivery

The Postal Service recently submitted its five-day delivery proposal to the Postal Regulatory Commission (PRC) for the second time after conducting additional research on Saturday delivery. 

On Thursday, March 24, the PRC released its opinion on the proposal, which included the following:
  • The USPS overstated its estimated annual net savings by $1.4 billion, and gross cost savings by $1.0 billion
  • Full savings might not be achieved until the program has been in place for three years
  • 25 percent of all First-Class and Priority Mail will be delayed by at least two days
The PRC also commented that eliminating Saturday delivery will remove a key differentiator between the USPS and its competition - independent shipping companies that either do not offer Saturday delivery or add a surcharge for it.
Postmaster General Patrick R. Donahoe released his response to the PRC that same day. He claimed that the cost savings estimates outlined in the Postal Service’s proposal were based on extensive research, outreach to customers, consultation of postal experts, analysis of mail volume trends, and more. Donahoe said he is looking forward to reading the  PRC’s full report and stressed that the opinion is advisory only. The Postal Service will continue to encourage Congress to approve the proposal.

You can read the PRC's opinion here.

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