Delivery systems such as United Parcel Service and Federal Express, for example, have gnawed away at the postal franchise. The Postal Service has fought back, but clearly without significant cost-cutting it won't be able to keep up, even on a tilted playing field. But competitors also deliver mail for customers using special envelopes or boxes. Commercial rates generally cost more, but customers who want guaranteed fast delivery pay regularly. The most damaging blow to the postal service's mail monopoly is Internet e-mail.
More people ignore paper in favor of electronic messages to family, friends and business associates.
The postal service is losing money because its volume is down. There are proposals to exact a fee or tax on e-mail transmissions. They are misguided and unlikely to see the light of day. The postal service must be overhauled, not propped up. It is a significant federal institution, but can't remain a bloated bureaucracy and be competitive.