Retired mailman here: Yes UPS and FedEx will pay the Postal - TopicsExpress

Retired mailman here: Yes UPS and FedEx will pay the Postal Service the final mile; it is called postage from the last local city post office to the final address. They will do this on most packages that have been shipped long distance. They made a profit big enough for the shipping costs that they will still make a profit by paying the smaller postage fee for that last mile and not using more man hours of their own employees. The Postal Service has a working contract with FedEx and I would think that they both get a reduced postage rate for these packages.

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