> The USPS will always exist due to being a federally funded service, so there isn't a massive incentive to compete with FedEx, UPS, etc.
USPS is not federally funded. The federal government mandates the USPS to serve every single address in the US, even if it causes them to lose money, but does not give USPS any money. So they have to subsidize that with their other pricing, but FedEx/UPS do not.
The USPS may not technically get congressionally allocated tax dollars each year, but they do have
1. A federally protected monopoly on the delivery of all mail smaller than a manila envelope or parcel. This is why FedEx can't mail a letter for you.
2. A federally protected monopoly on the use of mailboxes. This is why Amazon must park their truck, get out, and walk up to your front door to leave a tiny box.
3. An exemption from property taxes on all post office locations. Competitors must pay tax on their offices, distribution centers, and retail locations.
4. Interest free zero covenant loans from the federal government that only must be repaid in theory.
It's "not" funded but gets politically motivated emergency loans and sometimes one-off funds from the Treasury, or it couldn't run a deficit. It's probably quite corrupt in how it spends money.
USPS is not federally funded. The federal government mandates the USPS to serve every single address in the US, even if it causes them to lose money, but does not give USPS any money. So they have to subsidize that with their other pricing, but FedEx/UPS do not.