USPS Will Continue Delivering Groceries in SF for Two Years

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The U.S. Postal Service is expanding its same-day grocery delivery service with a two-year test trial of "Custom Delivery" in San Francisco. Up until this new program, USPS partnered with AmazonFresh to fulfill its grocery orders. The pilot program must have proved to be a success because USPS is expanding beyond the partnership to make early morning deliveries of groceries and other, non-postal items. The Taxpayers Protection Alliance has objections to this move, but the Postal Regulatory Commission (PRC) writes:

"The Commission finds that the prices offered by grocery delivery service providers operating in San Francisco are comparable to the price range the Postal Service intends to test. Therefore, Customized Delivery is unlikely to provide the Postal Service or the retail partner an unfair or inappropriate competitive advantage."

One snag in the plans is the $10 million revenue cap issued by the PRC. But it's likely that the cash-strapped USPS will appeal this decision at a later date.
· Postal Service wins approval for 2-year grocery delivery test in S.F., expanding Amazon pilot [GeekWire]
· Amazon and USPS Are Teaming Up to Deliver Groceries [Racked SF]