Dive Brief:
- The U.S. Postal Service is lowering on-time delivery targets for its First-Class Mail offerings in its 2025 fiscal year, which began Oct. 1, according to a Nov. 29 filing with the Postal Regulatory Commission.
- The less ambitious goals come after the Postal Service fell short of its on-time expectations across a range of First-Class Mail offerings during the previous fiscal year, agency data shows.
- The extent of the drop varies by product. For example, the on-time target for First Class Flats all fell from more than 90% to 80%. For Presort First Class letters, the on-time target for overnight delivery saw a smaller drop, from 95% to 94%.
USPS lowers delivery reliability targets
Dive Insight:
The scaling back of on-time targets shows the Postal Service still has a ways to go to accomplish its "Delivering for America" overhaul, which aims to improve the agency's financial health and delivery reliability.
One of the goals of Postmaster General Louis DeJoy's 10-year plan, introduced in 2021, is to meet or exceed 95% on-time service performance across all mail and shipping products. But the Postal Service has struggled with on-time delivery in the thick of overhauling its network, particularly in communities where it is consolidating facility operations.
The carrier's stumbles have drawn criticism from U.S. Congress members on both sides of the aisle. During a House Committee on Oversight and Accountability hearing on Tuesday, lawmakers grilled DeJoy on instances of poor service in their communities and continued financial struggles.
“I can’t go to the bathroom without a senator or representative stopping me and giving me a postal horror story," said Rep. James Comer, R-Ky. “Where we are now, do you think your reorganization plan’s working?”
DeJoy said the Postal Service is making progress in its overhaul, in part by slashing transportation costs and growing revenue in services that compete with FedEx and UPS. He said the cost to achieve 95% on-time delivery wasn't sustainable under the agency's existing infrastructure and service standards.
"This year is a big transition year for all the different types of things that we're doing, and we put in for a new standard," DeJoy said. "But our goal, once the network is satisfied, is to provide all 167 million delivery points with on-time service, no matter where they are."
Rep. Jamie Raskin, D-Md., questioned DeJoy’s approach on changing service goals during the hearing. He likened it to lowering the grading standard for someone who received a low grade, rather than figuring out how to improve their performance.
DeJoy said he disagreed with Raskin’s premise, adding that he would give himself “a good grade.”
