USPS Expands Grocery Delivery with Amazon Fresh

Post & Parcel June 22, 2015

The USPS will expand its grocery-delivery service called Customized Delivery, which provides customers with delivery of groceries and other prepackaged goods primarily during a 3 am to 7 am delivery window.

The Postal Regulatory Commission (PRC) granted permission last fall for the USPS to continue testing the program in conjunction with Amazon Fresh. The expanded Customized Delivery market test will begin in the New York City metropolitan area on or shortly after June 29, 2015, according to the latest filing with the PRC.

Amazon Fresh is already available in New York City, according to the Dead Tree Edition. The publication quotes a Nomura Securities International study that shows the grocery service undercharges three rivals by at least 17%.

"The Postal Service will presumably take on some of those early-morning deliveries," the publication stated. "It has told the PRC that its market test involves having non-career city carrier assistants deliver to a customer-designated location between 3 a.m. and 7 a.m. "without disturbing the recipient.""

The USPS has already tested same-day delivery in New York City - it launched Metro Post in New York in December 2013.