For packages, contract with the UPS stores or turn existing post offices into package stations, and let people pick up their packages from there.
Also, let the USPS get into the money-transfer, check-cashing, and pay-day loan businesses.
Mail service is obsolete. It's time for the USPS to embrace the 21st century.
I believe they farm out all their parcels. Let’s look into those bazillion dollar contracts.