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One answer: it's a natural monopoly (which means it has huge economies of scale.) A second competitor would need to make enormous investments to duplicate the USPS' infrastructure.

Second answer: it's because of regulation. It's against the law to go into business delivering mail. This prevents new entrants from showing up and taking share away from the USPS.


Third answer: It's because it LOSES MONEY. No startup in their right mind could compete with the USPS based on $0.42 to mail a letter.

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15y ago

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