USPS OIG: In this white paper, the OIG compared postal models across a selection of 26 posts: the U.S. Postal Service and 25 foreign national postal operators. While the Postal Service operates under a unique model that combines flexibility in meeting universal service obligations (USO) with significant constraints (such as stricter pricing regulations, mandated six-day delivery, and limited diversification), many foreign posts enjoy greater commercial freedom.

The posts in our sample that operate as private entities generally have greater commercial freedom than government-owned posts to streamline costs, optimize workforce size and composition, and manage capital investments. For example, most posts have more flexibility than the Postal Service in managing employment-based postal pension funds and determining how to diversify investments of retiree assets.

Like the Postal Service, many international posts face a challenging postal market and uncertain path to long-term financial resilience. Posts that have diversified, either within the parcel and logistics sector or in other business areas, tend to be more profitable as they can offset the declining or negative profitability of mail. Profitability, however, is not the sole indicator of a postal model’s relevance, which also hinges on the post’s contribution to a country’s economic development and social inclusion.

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