USPS and FedEx Discussing Alliance

The U.S. Postal Service and FedEx are discussing a potential strategic alliance, Postmaster General and CEO William J. Henderson has confirmed.

Possible plans include FedEx using its air network to deliver some Express Mail and Priority Mail shipments. In return, the Postal Service might deliver slower-moving ground parcels for FedEx in rural areas not currently reached by the Memphis, TN-based courier, or deliver packages the last mile of their destination.

The alliance would allow both entities to cut costs and generate revenue, while dealing a harsh blow to UPS.

Henderson pointed out that the USPS is currently providing some delivery services for DHL and Emery.