The USPS first class rates are a deal that would go up immediately if taken over by Fedex or UPS. IMO, the problems are the union and the attitude of the carriers on the street which are intertwined. You could make the USPS over as a true service at your doorstep with a smile.
Of course I’m dreaming.
If I were privatizing USPS you’d never see another postal carrier delivering mail to anyone’s door ~