Posts about usps

Why do we need a postal service?

Do we need a Post Office? That is the question I will be asking when I keynote and moderate PostalVision 2020, a one-day conference in Washington on June 15 along with Google’s Vint Cerf and other players and experts from the industry.

The answer to this question is probably yes. But I don’t think it should be answered until we reconsider the delivery industry from the ground up, seeing what is no longer needed and what the market can provide in the digital age.

My involvement with this project came through a side door. John Callan, who organized it, is a respected consultant and veteran in the industry. He read What Would Google Do? and, I’m glad to say, thought it had lessons for his industry. He came to the book because, at another conference, he heard the head of the UK’s Royal Mail ask the question, “What would Google do if it ran the Post Office?” Ruth Goldway, head of the US Postal Regulatory Commission, answered that she thought Google would give everyone a computer and printer (eliminating the cost of delivering now-obsolete correspondence). Callan thought Goldway had read my book. She hadn’t. But he did. So he contacted me; I was intrigued with the speculation, and we’ve been collaborating since.

Since then, I’ve worked with Callan and company on a project for the USPS Office of the Inspector General. And now I’m honored to be part of the event Callan has called in Washington to ask the big strategic questions about the fate of the Postal Service and the industry.

Who should attend? Obviously people in the delivery industry. So should its customers: retailers that ship directly to customers, Amazon, banks, lawyers, and media companies—including advertising agencies and their clients. Companies that are disrupting the industry should be there. That includes, for example, Facebook, which believes it is redefining and replacing the idea of mail; Google; email companies; new transactional and billing companies; telecoms whose bandwidth replaces trucks; even online media and digital agencies (who should understand what would happen if media and advertising become too expensive to deliver by mail). Entrepreneurs who find opportunity in the disruption of the industry should be there, of course. This includes companies that are rethinking such activities as paying bills and merchandising. Plus, of course, government officials and regulators will need to be there.

I intend to set the tone by proposing some obvious but difficult trends (like these for media), starting with this rule: If it can be digital, it will be digital. Anything that can be delivered by bits will have to be because that costs essentially nothing. That will continue to kill first-class mail and as it declines, its subsidy to the rest of the system disappears, which will raise both prices for customers and losses for the USPS. That trend is already accelerating. The USPS’ loss reached $2.6 billion in the first quarter alone, up from $1.9 billion the year before and volume of first-class mail fell by more than 7%. The USPS says it will be insolvent by September.

This is urgent.

Just as I tell newspapers they need to imagine turning off their presses so they discover where their real value lies, I am saying that the delivery industry has to imagine building itself over because it can and must. Or entrepreneurs will. There are countless new efficiencies to take advantage of. We can’t afford not to.

Do we still need the Postal Service’s guarantee of universal delivery? Likely yes, but it’s worth asking whether that obligation to get deliveries to remote outposts should be carried out with offices and trucks owned by the government or through subsidies to private industry. Does the Postal Service have a role to play in and identity (could it be a guarantor?) and security (our mail is protected from warrantless spying but our email so far is not). What are the principles and rights to privacy and security that should govern even private and electronic delivery? What impact does all this have on broadband policy?

There is much to discuss. This is a starting point, to identify the issues, needs, and opportunities and start the discussion around them. I’ve found the challenge fascinating, more than I’d ever have guessed.

If you are remotely connected with delivering messages, transactions, and goods; if you are the disrupted or the disruptor; if you see the opportunity to invest in the arena, I hope you’ll come.