Amazon has publicly addressed its relationship with the United States Postal Service for the first time since President Donald Trump recently escalated his criticism of the e-commerce giant dealings with the USPS.
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Three of President Donald Trump’s nominees to the U.S. Postal Service’s board of governors say they’re willing to challenge the president in his feud with Amazon.com Inc. over how much it pays to mail packages.
In February, the Nation outlined the increasing toll the Amazon deal is taking on USPS’s sorters and carriers due to understaffing and aging delivery infrastructure designed primarily to handle paper mail. Since the 2013 Negotiated Service Agreement — which at the time was trumpeted as Amazon “saving” the Postal Service from insolvency — USPS has been forced to take on higher and higher volumes of packages without adequate funding to retool its operations for the changing nature of its work.
In a report issued last April, Christian Wetherbee, an analyst for Citigroup Inc., concluded that the U.S. Postal Service (USPS) would have to raise its artificially low parcel rates by as much as 50 percent in order to break even on its fast-growing parcel offerings.
President Trump doesn’t need a new commission to figure out how to fix the US Postal Service, as he has called for. He could just read what prior analysts have found. Or better yet, ask the Postal Service itself.
Amazon, FedEx and UPS get about 5% to 10% off published rates for the service, known as Parcel Select, according to a person familiar with the matter. “There’s no competitive advantage that Amazon has over UPS or FedEx using the exact same service,” this person said.
A collection of articles that shows responses to Trump’s postal task force
WASHINGTON — President Trump abruptly issued an executive order on Thursday demanding an evaluation of the Postal Service’s finances, asserting the power of his office weeks after accusing Amazon, the online retail giant, of not paying its fair share in postage.
Pity the poor U.S. Postal Service. Not only does it get no respect, it doesn’t even get leaders who might try to fix some of its many ills.
Now Amazon can’t necessarily automate its way out of the capacity crunch. Amazon will still need human labor and can build more infrastructure in metro areas, but can’t overtake the USPS infrastructure in place.
Cassidy, a Republican from Louisiana, proposed the Ending Needless Delivery Subsidies (ENDS) Act, which would force the U.S. Secretary of State to negotiate the end to all foreign subsidies of international postal shipments by Jan. 1, 2021.
As the Postal Service puts the five prototype models it is considering through extensive testing this year, letter carriers shared with Trucks.com the demands they face every day and evaluated the vehicles under consideration.
Amazon already handles the logistics and fulfilment further up the delivery funnel so that 75% of what goes through the USPS from Amazon is all “last mile.” Raising prices might also prompt a shift to alternative private providers, such as Fedex and UPS.
UPS, the shipping giant, has been in a back-and-forth with Amazon in recent years over the post office’s cost structure, which has direct impact on how the Postal Service sets its package shipping prices, according to public documents filed with the Postal Regulatory Commission (PRC).
FARGO — People are now using Amazon to order things like big bags of dog food, cases of water and even bed frames. While the Postal Service is seeing an increase in business, its carriers are not delivering justs letters anymore.
President Trump’s nominees for the USPS Board of Governors could shape future of the contract