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US Postal Service IPO not a daft idea - observers

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(Credit: Reuters) United States Postal Service (USPS) should consider going public.United States Postal Service (USPS)
October 14
1:09 PM 2013

Following the success of the Royal Mail's public listing in the UK, industry observers were now saying that an initial public offering of the United States Postal Service (USPS) would not be a harebrained proposition.

The interest in postal delivery service businesses might have been dim for now because of the Internet, but investors foresee a boom in the business once again due to the popularity of online shopping on e-commerce or retailer sites like Amazon.com. The rise in online retail sales also reflected the increase in revenue in shipping and packaging services, earning USPS a 5% increase at USD11 billion last year.

The beleaguering postal service incurred a USD15.9 billion in losses last year. Revenue from its first-class mail services had declined 3% percent to USD28 billion, and had requested to stop providing letter delivery services on Saturdays to save USD2 billion in costs annually.

Investors were confident that a public listing should be in order for USPS as there is still an enormous value in the postal service seen in the financial market.

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