October 27, 2014 Last Updated 9:03 am

USPS gets green light to expand grocery delivery test for online retailers such as Amazon

Late last week the Postal Regulatory Commission approved a plan for the U.S. Postal Service to deliver groceries for online retailers such as Amazon.com’s AmazonFresh. The move is an expansion of the existing test that has been going on in San Francisco in 38 zip codes.

The expansion of grocery delivery by the post office was opposed by the Taxpayers Protection Alliance which argued that allowing the USPS to get into the grocery delivery business for Amazon would be unfair competition to existing, independent, grocery delivery services.

Technically, the program is capped at $10 million in revenue, but the USPS can ask for an exemption to the limit, which the USPS has already said would probably exceed that amount.

(Maybe magazine publishers can begin polybagging Twinkies with their titles in order to get a discount on their postal rates?)

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