UPS SurePost’s Postal Service split sparked by service, cost worries

Dive Brief:

• A combination of service risks and price concerns led UPS to break away from the U.S. Postal Service for SurePost deliveries, UPS CEO Carol Tomé said on an earnings call Thursday.
• UPS was worried about “service deterioration” for SurePost packages delivered by the Postal Service due to changes incentivizing the drop off of packages further upstream in the agency’s network, Tomé said. She also noted the Postal Service wanted to increase rates for delivering SurePost packages.
• “That value proposition of an increased cost as well as deteriorating service, that didn’t work for us,” the CEO said. Postmaster General Louis DeJoy defended the moves in a recent interview with Supply Chain Dive, saying they were necessary for the agency’s future and expressing confidence in ser…