Delivering residentials after dark is an absolute nightmare. Is that house on the corner 5647 or 5643? Is there one house or two houses down the gravel driveway? Hope you've been driving the route for 30 years and have your daily 200-stop route memorized, because it can be a pain to figure out even in broad daylight.
People tend to get suspicious of nighttime activities in the suburbs and exurbs. I'm not sure that would go over too well. But deliveries to lockers would make sense.
And the noise and the poor staff who now has to work night shifts.
UPS is very much a 24 hour operation. All of their flights are from like midnight-4am.