Uber is adding a new task to its list of services: mailing consumers’ return packages.
The ride-hailing and delivery company said Wednesday that its drivers will collect up to five prepaid, sealed packages and drop them off at a local post office, UPS or FedEx store. Uber will charge a flat fee of $5 for the service and a flat fee of $3 for its Uber One membership.
While the service is expected to be used primarily for returning packages, Uber drivers will also mail new packages that are sealed and have a prepaid label.
This new service presents a huge opportunity for Uber. FedEx and UPS deliver 31 million packages a day, while the U.S. Postal Service delivers 25 million packages, said Satish Jindel, a transportation and logistics consultant and president of ShipMatrix.
Jindel said most of the volume involves businesses that don’t return packages regularly, and he believes many people will continue to return packages themselves rather than pay Uber $5 to return a package.
However, Jindel estimates that weekday demand for Uber’s return package service could be around 574,000 packages. That number will rise about 25% in January due to holiday returns, he said.
The San Francisco-based company said the service will be available in nearly 5,000 U.S. cities, and customers will be able to select package delivery locations in its app. Only list locations that are open for at least the next hour. Once the package is delivered, the driver will provide visual confirmation.
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