by Carlos E. Castañeda

SAN FRANCISCO (CBS SF) — The U.S. Postal Service is looking to build upon a pilot delivery program launched with Amazon.com (AMZN) in San Francisco and expand it to other major cities with other retailers.

The Postal Service has been delivering prepackaged groceries for Amazon Fresh in a 60-day trial program which began in San Francisco in August.

According to a regulatory filing, the Postal Service now wants to develop “a long-term, scalable solution to enable expansion of customized delivery to additional major metropolitan markets across the nation.”

The Postal Service said the expanded delivery program could bring in more than $10 million a year in additional revenue to the agency, which does not receive taxpayer money and has seen its yearly revenue plummet from declining mail volume and the recession.

The filing did not specify the cities being considered. Aside from San Francisco, the AmazonFresh service operates in Los Angeles, San Diego and Seattle.

The Postal Service has delivered a number of goods for Amazon over the years and the USPS has signaled it is looking to compete in the package delivery market.

The Postal Regulatory Commission will rule on the agency’s request after a public comment period.

Comments (2)

Leave a Reply

Please log in using one of these methods to post your comment:

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s