This same thing is being seen in the U.S. Post Office now too. Underfund it into failure rather than provide a public good.

Capitalism definitely hasn't solved the issue, and certainly without government regulation. See also the last mile problem for internet service, telephone service, and cable service.

UPS and FedEx apparently rely on the USPS for last mile delivery in remote areas. (Source for this?)

The poor and the remote are inordinately effected in almost all these cases. What other things do these examples have in common? How can we compare and contrast the public service/government versions with the private capitalistic ones to make the issues more apparent. Which might be the better solution: capitalism with tight government regulation to ensure service at the low end or a government monopoly of the area? or something in between?