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Traveling internationally? Get your Holafly eSIM here: https://holafly.sjv.io/YVYG5r With Holafly, you can get connected when you arrive, without swapping physical SIM cards or worrying about finding a local phone plan. The United States Postal Service once delivered 213 billion pieces of mail annually and generated hundreds of millions in profit. Today, USPS is losing roughly $9 billion a year and facing a potential cash crisis. In this business breakdown, I trace the rise and fall of the USPS, from Benjamin Franklin and the creation of America's postal network to the financial decisions, congressional restrictions, and competitive pressures that put one of the country's oldest institutions in jeopardy. Looking to become a channel member to support our production and receive exclusive content? Sign up here: https://www.youtube.com/channel/UC-mfn4ibOC5ewLcpmgl0C4g/join Get the 2-minute cheat sheet for this video → https://girdley.com/youtube 👇 SUBSCRIBE for more business breakdowns https://www.youtube.com/@Michael-Girdley?sub_confirmation=1 ------------------------------------------------------------------ ► Get my weekly letter to business owners: essential insights to run, grow, and stay ahead in your business → https://links.girdley.com/newsletter-yt ► For sponsorships or inquiries please reach out to: [email protected] ► Do you have a hat I should wear in a video? Send it to us: [email protected] ► Free events on all things small business: https://links.girdley.com/lectures-yt ► Deep dives on businesses for sale: https://www.youtube.com/@AcquisitionsAnonymousPodcast ► Follow me on Twitter/X: https://x.com/girdley ------------------------------------------------------------------ The United States Postal Service was once one of America's greatest institutional achievements. Beginning with Benjamin Franklin in 1775, the postal system connected communities, enabled nationwide commerce, and helped businesses like Sears reach customers across the country. By the 1990s, USPS was generating substantial profits, supported by an enormous volume of first-class mail, catalogs, and commercial correspondence. But beneath that success was a structural problem that would become increasingly difficult to ignore. The turning point came as the internet transformed how Americans communicated and conducted business. First-class mail declined as banking, insurance, billing, and personal correspondence moved online. The Great Recession accelerated the collapse in mail volume, while the Postal Accountability and Enhancement Act of 2006 imposed billions in annual retiree health benefit funding requirements. USPS was expected to cover its own costs, but its ability to adjust pricing, reduce services, and restructure operations remained heavily constrained by Congress and regulators. As mail volume continued falling, the economics of the postal network deteriorated. USPS still had to deliver to a growing number of American addresses, even as each address received fewer pieces of mail. Attempts to close facilities, eliminate Saturday delivery, and reduce operating costs encountered political resistance. Meanwhile, Amazon expanded its own delivery network, putting additional pressure on a package business that had become increasingly important to the Postal Service's future. By 2025, USPS was reporting approximately $9 billion in annual losses on $80.5 billion in revenue. Despite reducing its workforce substantially from its late-1990s levels, employee compensation and benefits continued to represent a major share of expenses. Leadership warned Congress in 2026 that the organization could run out of cash without additional borrowing capacity. Higher stamp prices, accounting changes, and operational restructuring had not resolved the underlying financial challenges. What happened to the USPS is ultimately a story about incentives and organizational design. In this documentary, I compare the Postal Service with profitable competitors like UPS and examine why a government institution expected to operate like a business can struggle when its leadership lacks the authority to make essential business decisions. For founders, operators, and investors, the lesson goes well beyond the postal industry: when accountability, incentives, and decision-making authority are misaligned, even an essential service with a massive customer base can become financially unsustainable.

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