Dive Brief:
- The U.S. Postal Service improved its on-time delivery performance during the 2025 peak holiday shipping season, aided in part by bolstered capacity, service standard changes and lower volume compared to the previous year, according to a May 1 report from the agency's Office of Inspector General.
- The agency posted faster delivery times and fewer customer complaints, according to the OIG. All Postal Service mail products, including Ground Advantage, Parcel Select and Priority Mail, improved their service performance compared to the previous peak season. However, Ground Advantage was the only offering that achieved its performance target.
- USPS management said enhanced monitoring and frequent communications between operations leaders and customers helped improve results. Additionally, equipment upgrades helped the agency reduce manual work and enable fast processing of package volumes, the OIG stated.
Dive Insight:
The OIG's report, which reaffirmed some results previously reported by the Postal Service, was more upbeat compared to its 2024 peak season review. The agency watchdog didn't issue any recommendations within the report but said it encourages the USPS "to continue to build upon these successes, and to build consistency across its network, so it can achieve target scores and win a larger share of the nation’s shipping business."
Improving service reliability is a priority for Postmaster General and CEO David Steiner as the agency pushes to more effectively compete with FedEx and UPS. Revamping the Postal Service's network footprint, including the launch of sorting and delivery centers, is a key component of those efforts.
"During the past four years, the Postal Service has debuted new facilities to ensure the organization has the space needed to not only process additional holiday volume but to better serve customers year-round," per the OIG.
USPS’s peak seasion performance last year also benefited from service standard changes that came as part of a wider overhaul to volume collection processes, according to the OIG. In April 2025, the agency began adding one extra day in transit for Ground Advantage and single-piece First-Class Mail originating in a ZIP Code more than 50 miles from the nearest regional processing and distribution center.
"Additionally, Sundays and holidays were no longer counted in service performance measurement for mail and packages accepted on a day prior to Sunday or a holiday," the OIG added.
