USPS Adding Next Day Priority Parcel Shipping Service

The US Postal Service (USPS) recently announced its Next Day Priority service, signaling a significant move to elevate its position in the competitive parcel shipping landscape.

This announcement from USPS comes off the heels of UPS’s decision to move the final delivery of UPS’s SurePost service in house and deliver the bulk of this service with UPS drivers. SurePost is a contracted service that offers customers a reduced rate from 1 to 9 lbs. USPS delivers the last mile on about 50% of the packages. The remaining 50% are delivered by UPS. This method for final mile delivery began in an effort to reduce cost and could add an additional day to delivery times over the UPS Ground Residential service. Starting in 2025 all of the SurePost packages will move into the UPS network and away from the USPS.

USPS’s Next Day Priority service is in response to the growing demand for speed and next day solutions due to evolving customer expectations over the years. This service will launch sometime in 2025, however, no firm date has been announced. This innovative service will offer next-day delivery of packages to a vast network of last-mile delivery units, covering addresses within a 150-mile radius of regional processing and distribution centers, encompassing over 80% of daily destinations across the nation.

USPS has continued to add more solutions and service levels as a growing initiative to stay competitive with other parcel providers. In 2023, USPS introduced their Ground Advantage service and plans to expand the USPS Connect service as well. By offering competitive rates, streamlined processes and a robust network infrastructure, USPS aims to differentiate itself as a reliable, cost-effective shipping partner for shippers looking for expedited delivery solutions.

As shipping industry observers and businesses navigate these developments, the USPS’s strategic foray into next-day delivery services and UPS’s consolidation of its ground delivery operations reflect a broader trend toward enhanced service offerings, operational efficiency and customer-centric innovation.

Transportation Insight helps businesses assess parcel carriers and parcel service levels to understand what makes sense for your shipping profile. Feel free to reach out for a free assessment.

About Author:

Robyn Meyer

Senior Vice President, Parcel Strategy & Solutions

Robyn is the Senior Vice President of Parcel Strategy & Solutions at Transportation Insight, leading small parcel strategy and solution development across various platforms and transportation modes. With nearly 26 years of experience, she specializes in e-commerce and international trade compliance. Robyn enhances digital supply chain platforms by addressing common shipper challenges and driving innovation.