With my experience with USPS around the holiday season, I have found they are a lot faster compared to FedEx and UPS. They get my package on time with no delays and they also deliver on saturdays unlike, UPS with is a plus no more waiting two extra days to get a package.
The United States Post Office might try to compete with FedEx or UPS, but they don't stand a chance in showing a quality service for the job. After years of questionable deliveries, the USPS might suggest that they are worthy of competition. However, as prices to up and packages are delayed, it's the same service as before and other carriers do a better job.
USPS is worse than ever. They don't always deliver as promised even when they advertise it. FedEx is just about the only service that is worth their salt and they are expensive. USPS might be utilized more than anyone else, but it's like buying generic at the grocery store -- you just don't know what to expect.
No, the USPS will not show up FedEx and UPS during the holidays. The USPS does not have what it takes to please consumers any longer, and both FedEx and UPS are doing quite well. It is more likely that FedEx and UPS will further weaken the USPS and will become stronger after the holidays.