Overnite ties up with US Postal Services

agencyfaqs! News Bureau

NEW DELHI

The Rs 40-crore Indian courier company Overnite Express has joined hands with the United States Postal Services and launched a new co-branded service at an aggressive price. The two have signed an agreement by which both will leverage their core strengths to realise the business potential offered by today's global economy, said a spokesperson talking on behalf of these two companies.

Leveraging the vast network of USPS, the duo plan to launch Overnite's US Smart Sewa service from India to various parts of the US. Positioned on the value for money plank, the US Smart Sewa service rates are aggressively priced at Rs 500 per document. The service is an extension of Overnite's cost effective and volume-driven domestic service Smart Sewa launched last year.

The $7-billion USPS, which has a strong network of 80,000 employees, is plagued with a peculiar problem: almost 98 per cent of its revenue comes from its domestic market and only 2 per cent comes from the international market. "Competition has increased significantly but we think the market is highly underserved and overpriced," Robert J Edwards, director, Asia Pacific region, global business development, USPS, told newsmen.

As a strategic decision to improve its international sales, the US Postal Service decided to start its Global Business Development wing, which would join forces with well-established private packaged service providers in every major commercial market in the world to provide service into the US.

According to Edwards, with the new alliances, USPS hopes to increase its international sales from 2 per cent to 15 per cent by the year 2006. "Our goal is to be a strong international player and be the best value provider," he said. To begin with, the company is expecting a 20 per cent increase in its turnover in the year 2001.

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