Is it a monopoly?
USPS's revenue is $72 billion
UPS's is $11.6 billion
FedEx is $6.1 billion
I'd agree it LOOKS like a monopoly from revenue numbers, but how about from profit numbers?
Clearly, USPS is in the tanker.
FedEx is around $500 mil in profits.
FedEx reports higher earnings and revenue - Dec. 18, 2008
$986 million for UPS
UPS revenue, profit up, but miss Street expectations - Business First of Louisville:
Last I could find for USPS profits was $1.4 bil for 2005
USPS Ends Year with a Profit
Now let's do net profit margins.
USPS - 1.9%
UPS - 8.5%
FedEx - 8.1%
I'm pretty sure no one is surprised that the government owned does the worst.
In terms of market, USPS has 80% market share. So by at least that measure it is.
But how do we define monopoly?
[ame=http://en.wikipedia.org/wiki/Monopoly]Monopoly - Wikipedia, the free encyclopedia[/ame]
I don't think that the USPS has a monopoly. Especially when people are free to choose (and do choose) private firms all of the time.In economics, a monopoly (from Greek monos , alone or single + polein , to sell) exists when a specific individual or enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it. Monopolies are thus characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods.
One aspect that I like how johnjoel brought up is how it facilitates business. It provides a low cost method of advertising, bill payments and communication for the business world. While that may be more relevant about a decade ago, it still holds true, abet to a lesser degree/