Postal Service Approved to Deliver San Francisco's Groceries The U.S. Postal Service got the go-ahead for a market test in San Francisco to deliver groceries in the early morning hours.

By Kate Taylor

Opinions expressed by Entrepreneur contributors are their own.

When you wake up with groceries on your doorstep, don't thank the milkman – thank the Postal Service.

The Postal Regulatory Commission approved a plan on Thursday for the Postal Service to deliver groceries between 3 a.m. and 7 a.m. The two-year market test of what it calls "Customized Delivery" is currently restricted to San Francisco, but may someday expand into a national program.

The Postal Service has been testing grocery delivery since August with Amazon's same-day and early morning grocery service, AmazonFresh. During the operational test, the Postal Service processed an average of 160 deliveries per day in 38 zip codes.

Related: Taking Aim at Costco and Walmart, Amazon Launches Prime Pantry

The two-year market test is designed to help bring the Postal Service's grocery delivery services to other major cities around the U.S. and to test other possible delivery windows. Currently, the Postal Service only makes these deliveries when mail trucks would not otherwise be in use, resulting in middle of the night and early morning drop-offs.

The regulatory commission capped annual revenue for the program at $10 million, saying that there was not yet enough financial data to estimate revenues.

If Amazon and the Postal Service can team up to expand the test to other cities, it could be a major victory for both parties. Recently, the Postal Service has been working to update the organization's image and services, including launching lower rates for customers who ship at least 50,000 parcels a year to attract big ecommerce companies. Meanwhile, Amazon is scrambling to keep ahead of ecommerce competitors, with Google expanding its same-day delivery service.

Related: 3 Ways to Be More Savvy About Free Shipping

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Leadership

7 Telltale Signs of a Weak Leader

Whether a bully or a people pleaser who can't tell hard truths, poor leadership takes many forms.

Thought Leaders

Cultural Fit Can Make or Break an M&A Deal

One of the most critical components for success -- cultural fit -- often falls by the wayside.

Business News

Your Old Apple AirPods Can Soon Act as an Over-the-Counter Hearing Aid, According to the FDA

The new software is compatible with the Apple AirPods Pro and accessible through iOS — for free and now FDA-authorized.

Business News

Walmart Is Laying Off Hundreds, Relocating Others as the Company Closes a U.S. Office

Walmart is giving some employees at least a month to decide if they want to relocate.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.