USPS saves $10M per Saturday by Switching to Rackspace

Note: April Fool’s Day gets the best of us sometimes and this post is an attempt at making you laugh for today’s celebration, even if it’s just for a few moments.  Enjoy!  Happy April Fool’s Day!

The Postal Service is taking a new strategy in its war with electronic mail–if you can’t beat ’em join ’em.

After last week’s announcement to cancel mail delivery on Saturdays, the Postal Service has decided to route all conventionally delivered Saturday mail over the internet. They have chosen Rackspace Email & Apps as their email hosting service provider for dependability and Fanatical Support.

Their plan is to scan all paper mail, send it to the destination office via email, and print out each piece for hand delivery. Routing and fuel costs provide the majority of savings. Sending each digital piece of mail through Rackspace’s triple layered spam filtering provides even more cost savings by reducing the overall volume by two-thirds.

“It’s amazing how much junk snail mail and spam email have in common”, says Postmaster General, Allegro Monotoni. “Rackspace cuts out most credit card pre-approvals and cable company introductory offers. I have yet to see one ad for Viagra make it through.”

The Postal Service lost $3.8 billion last year, $10 million per Saturday, and plans to provide the same level service at a fraction of the cost.

“We see this as a testing ground. If it goes well for Saturdays, we’ll consider converting our entire delivery to the new hybrid paper-electronic model,” says Monotoni. “Until we investigated Rackspace, I figured a bailout was our only option.”

Illustration by Klaus Shmidheiser

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