USPS to expand food delivery service to other retailers

The U.S. Postal Service announced that it wants to expand its grocery delivery services for Amazon (NASDAQ:AMZN) and possibly other retailers. The agency is seeking approval to test the plan beginning Oct. 24 in multiple metropolitan areas, reported the Wall Street Journal.

USPS has already begun a 60-day trial with Amazon, due to end in mid-October. The agency delivers groceries for Amazon customers early in the morning, before the USPS trucks are being used for mail.

USPS has been partnering with Amazon since November 2013, when the agency began delivering packages on Sundays for the e-commerce giant.

A filing with the Postal Regulatory Commission said the expanded test could bring in more than $10 million in revenue a year. The filing also said it was hoping for an expansion across metropolitan U.S. areas.

The project is an aggressive move by the USPS to compete in the package delivery market. The Postal Service said it wants to offer delivery during other hours and for more food retailers.

The move may also help Amazon speed up the expansion of its AmazonFresh service, which is currently available in San Francisco, Los Angeles, San Diego and Seattle.

For more:
-See this Wall Street Journal article

Related stories:
Amazon launches wearable technology store
Amazon launches Prime Pantry
New Amazon Fire takes aim at Apple
Amazon's relaunches as online grocer with a twist
Amazon to stream HBO