The USPS's major fail was not aggressively marketing their services and/or marketing them without targeting. If you live on the mainland, businesses offer free shipping (via UPS), but for AK, HI et al only 2nd Day Air is available because companies hooked their carts into UPS' API unaware that the USPS offers API for their services too. Imagine the disincentive of paying $22 shipping to order a pair of socks online if you live in Alaska when the USPS could have shipped it First Class for $1.25. USPS is far more cost effective for many business shipping situations, they even provide free packaging - but UPS' targeted marketing got them sole provider status with many businesses, a huge disservice to millions of customers. Now even USPS is a UPS customer.