Ross and Rachel from Friends apparently weren’t the only ones to get back together after a break. During its Q2 earnings call, UPS announced that the end of its contract with USPS for Ground Saver (formerly SurePost) may have been just a break, not a breakup.

Discover why UPS is reengaging USPS for Ground Saver, what that change means for shippers, and how you can save as the carrier revamps the low-cost service.

Need a Refresher on UPS Ground Saver?

On April 2, 2025, UPS rebranded its SurePost service as Ground Saver, following the end of its partnership with USPS. As SurePost, UPS handled the initial processing of the parcels and left delivery to USPS. When the contract ended, UPS brought the entire process in-house.

Ground Saver is a cost-effective, contract-only solution for customers sending lower priority parcels. The shipping time is typically equivalent to UPS Ground, plus one to two additional days.

UPS and USPS: Reuniting?

The result of bringing Ground Saver in-house? Good for customers, but not for UPS.

UPS CEO Carol Tomé explained that the carrier “had a modeled algorithm that we put into our plan regarding delivery density per stop. That algorithm did not work.” With $85 million more in delivery expenses than anticipated, Tomé says the carrier is “working on operational changes that we could make, but we also have reengaged with the USPS. There’s new leadership there, they have excess capacity, and so we’re having a discussion with them.”

The two carriers are negotiating how they’ll work together again, with CFO Brian Dykes sharing, “As with every relationship, there’s operational stuff that we’re constantly working on to make each other better. But I think that’s been a win for the USPS. It’s been a win for us, and it’s driving accretive margin.”

The question is, will this reunion, which benefits UPS and USPS, also benefit customers?

Early signs point to “no.” Tomé said, “we believe Ground Saver should be a product that complements an array of products used by our customers and not be a product just by itself. During the quarter, we took deliberate pricing actions to manage our Ground Saver volume. And as a result, the volume in this product declined by 23% year-over-year.”

Protect Your Bottom Line Amidst UPS Reorganization

As UPS shifts its model for delivering Ground Saver parcels, shippers are left to deal with the growing pains. Ground Saver parcels aren’t protected by the UPS Service Guarantee, leaving shippers without recourse for late deliveries. After all, shippers signed up for a low-priority service at a reduced rate.

Instead, those shipping with the contract-only Ground Saver service should consider a parcel rate negotiation for Ground Saver and all other UPS products. UPS is making changes for its benefit. Shippers should do the same.

With both UPS and FedEx, shippers can renegotiate their contracts at any time, for any reason, and ShipRx has a 100% success rate in lowering shipping spend for our clients.

Contact us today for a free Savings Analysis and learn how you can reduce your annual parcel spend.