Meridian Star

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November 22, 2012

Cash-strapped post office tests same-day delivery

(Continued)

WASHINGTON D.C. —

Kuohung lives in a downtown Boston high-rise apartment with her husband, who often travels out of town for work. The couple says they would welcome having more retailers offer same-day delivery as an option. Still, at an estimated $10 price, Kuohung acknowledges that she would likely opt to wait an extra day or two for delivery, unless her purchase were a higher-priced electronics gadget or a special toy or gift for her son's birthday.

"I prefer not to spend my time driving in a car, fighting for parking, worrying about the kids, dealing with traffic and battling crowds for a limited selection in stores," said Kuohung, as her 1-year-old-twins and 4-year-old son squealed in the background. "But right now Amazon delivers in two days since I'm a member of Prime, so it would have to be something I can't get at the corner CVS or the grocery store down the street."

Under the plan, the Postal Service is working out agreements with at least eight and as many as 10 national retail chains for same-day delivery. The mail agency says nondisclosure agreements don't allow it to reveal the companies. But given the somewhat limited pool of large-scale retailers — they must have a physical presence in 10 or more big U.S. cities to be a postal partner — the list is expected to include department stores, sellers of general merchandise, clothiers, even perhaps a major e-commerce company or two.

Consumers will have until 2 or 3 p.m. to place an online order with a participating retailer, clicking the box that says "same-day delivery" and making the payment. Postal workers then pick up the merchandise from nearby retail stores or warehouses for delivery to homes between 4 and 8 p.m. that day. In San Francisco, the post office will closely track work hours and travel, which could quickly add to costs depending on traffic, total package volume or the proximity of merchandise in a delivery area.

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