(And everything you explain could also be accomplished by state-run services, no need to involve the federal level.)
After all what constitutes not servicing?
How would a state run service be better?
Local elections have real value.
But splintering a government entity just because you can isn't automatically better.
For instance who pays for the last mile? Who pays for the first mile? With a federal program it doesn't matter the answer is the same. With a state program sending mail to a low density state could impact the pricing structure of a high density state.
You could end up with fragmentation where cross state is more expensive or worse these friction points are enough where the monopoly breaks down because a few states don't need a monopoly and just let local businesses compete.
Yep, aligns incentives nicely!
> You could end up with fragmentation where cross state is more expensive or worse these friction points are enough where the monopoly breaks down because a few states don't need a monopoly and just let local businesses compete.
Sounds like a good outcome, no? Yes, down with monopolies, especially government enforced ones.
The USPS gets a monopoly because it is required to go everywhere. If a private company doesn't want to go into Michigan it doesn't have to.
Without a monopoly protection USPS goes from being slightly unprofitable to very unprofitable by companies competing only in cheap areas.
Basically USPS needs $0.78 to mail a one ounce letter overall. However it doesn't need that much for you to mail within the same city, it is probably much less than that.
But they do need it if you send a letter across the country.