Cash-Strapped Post Office Tests Same-Day Delivery

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WASHINGTON (AP) - The cash-strapped U.S. Postal Service is moving aggressively this holiday season to offer same-day package delivery for Internet shoppers.

Teaming up with major retailers, the post office will begin the expedited service in San Francisco on Dec. 12 at a price similar to its competitors. If things run smoothly, the program will quickly expand next year to other big cities.

It follows similar efforts by eBay,, and most recently Wal-Mart Stores Inc., which charges a $10 flat rate for same-day delivery.

The delivery program, called Metro Post, seeks to build on the post office's double-digit growth in package volume to help offset steady declines in first-class and standard mail. It's projected to generate between $10 million and $50 million in new revenue from deliveries in San Francisco alone.

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