UPS and USPS Forge Preliminary Deal to Revive Ground Saver Delivery
UPS and USPS are working on a preliminary agreement to revive their Ground Saver delivery partnership. This development comes nearly a year after their contract expired and subsequent fallout. The relationship soured earlier this year when UPS decided to discontinue support for PO Boxes and certain U.S. territories with its Ground Saver service, formerly known as SurePost.
Background on UPS and USPS Partnership
When negotiations between the two carriers broke down, both parties exchanged blame. As a result, UPS shifted its SurePost volume in-house as part of its Network of the Future initiative. This decision, however, appears to have backfired for UPS.
Current Status of Ground Saver Delivery
During a recent Q3 2025 earnings call, UPS CEO Carol Tomé discussed their recent discussions with the United States Postal Service. She pointed out that with the arrival of new Postmaster General David Steiner in July, UPS sought to create a collaborative approach for future operations. Tomé reported a 32.7% decrease year-over-year in average daily volume for Ground Saver, a decline attributed partly to shifts in their business strategy.
- The discussion focused on establishing a mutually beneficial revenue and rate structure.
- UPS expressed optimism about reaching an agreement that maintains high service standards.
- The upcoming deal will also enhance last-mile delivery for UPS Mail Innovations, targeting small to medium-sized businesses.
Future Outlook for UPS and USPS
While the preliminary agreement signals a positive turn, Tomé cautioned that the full benefits are unlikely to be realized during the peak season. “It’s too early,” she stated, indicating that improvements might not begin until early next year. More details are expected by the end of Q4.
This renewed partnership aims not only to bolster UPS’s Ground Saver offering but also to optimize services for Mail Innovations. UPS and USPS hope that the renewed collaboration will yield significant advantages for both companies and their customers in the coming months.
