With the U.S. Postal Service billions of dollars in the red, experts are looking at a number of possible fixes to trim postal costs and save taxpayer money.
The National Academy of Public Administration (NAPA) will conduct a study to investigate proposals to privatize some post office functions, the Washington Post noted.
Under a privatization deal, mail delivery would be open to private companies right up to “the last delivery mile.” A postal employee would complete the mailing process by actually delivering letters and parcels to their destinations.
By combining traditional mail service with competitive private businesses, the study suggests that the post office could increase efficiency and lower costs.
Last year, the Postal Service lost $16 billion, largely due to employee retirement funding requirements instituted by Congress.
Facing the growing shortfall, as well as the continuing loss of revenue to email and package delivery companies like FedEx (NYSE:FDX) and UPS (NYSE:UPS), the USPS has been exploring a variety of cost-saving measures, including closing post offices and ending Saturday mail delivery.