The U.S. Postal Service can’t fix its finances through cuts , according to Postmaster General David Steiner. Steiner said the 250-year-old agency needs to expand its revenue base to restore prominence in the nation’s delivery network. It also should capitalize on its long-standing legal obligation to deliver to every address.  They have to review their entire budget.

     One way it can do that, Mr. Steiner said during the Postal Board of Governors meeting in Washington, is by working with more customers to provide final or “last mile” delivery to individual home and businesses, the most expensive and labor-intensive part of delivery.  “I’ve taken to saying that we cannot cost-cut our way to prosperity,” he said. “We have to grow.”

Mr. Steiner said the postal service, which has faced an uncertain future since President Trump’s election to a second term, is negotiating deals with private parcel delivery service UPS and similar companies to expand its last-mile service for the final leg of delivery. He said the postal service also wants to open up that program to large and small retailers, offering same-day and next-day delivery.

     “We’ve begun discussions with a number of retailers, and the desire for fast, reliable and affordable delivery is certainly strong among all retailers,” he said. “Our value resides in going to every address six and often seven days a week while offering a remarkable retail and processing footprint.” Mr. Steiner, who began his tenure as postmaster general in July, was previously a board member of the FedEx delivery service.