Ex PMG Patrick Donahoe says Trump is wrong – Amazon’s contract is profitable for the US Postal Service

April 5, 2018

The former head of the US Postal Service is taking on President Donald Trump’s campaign against the USPS’ Amazon deal.

“Only fools, or worse, are saying that our money losing Post Office makes money with Amazon,” Trump tweeted Monday. “THEY LOSE A FORTUNE, and this will be changed.”

Trump doubled down with another tweet on Tuesday, saying Amazon is “costing the United States Post Office massive amounts of money for being their Delivery Boy.”

However, according to Patrick Donahoe, who served as the postmaster general from 2010 to 2015, that’s simply not true.

Donahoe “unequivocally stated that the Amazon contract is profitable for the USPS” while in conversation with UBS analysts, according to a note released by the bank on Thursday.

The former postmaster general broke down the fact that the USPS’ business is split between mail — like letters and magazines — that only the government service could deliver, and “competitive products,” or packages that rivals like FedEx or UPS could deliver. Package delivery legally needs to cover operating costs and 5.5% of USPS’ fixed costs.

According to Donahoe, package products are covering “meaningfully more” than the 5.5% allocation. Last year, shipping-and-package revenue jumped by $2.1 billion, an increase of 11.8% over the previous year. According to the USPS, much of that growth was thanks to e-commerce.

SIGN UP FOR OUR POSTAL NEWS BLAST!


Get the news sent straight to your inbox. Please remember, this list sends an email every weekday, so if you are not a news junkie, then this might not be the list for you. Thanks

Thank you for subscribing.

Something went wrong.

89
Join the Conversation

44 Comment threads
45 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
67 Comment authors
  Subscribe  
newest oldest most voted
Notify of
April Brown Graham

Oh Patrick you have already left with your huge pension and benefit package. Be gone.

Shannon Cole

😂😂😂😂

Jennifer Johnson

😂😂😂

Debby Childers Parson

😂😂😂

Daniel

Exactly!!

Leland Grant

don ho, . tiny bubbles, coming out his rump, another corrupt asshole

Lori Mae Hatfield

Don’t really see how it is profitable when they are delivering on Sunday Amazon only packages.

Shannon Cole

We deliver priority on Sunday too . Well i dont but our RCA’s do

Karen Vest

Started priority delivery in our district, too🙄

Daniel

Well my area did too but local union had it stopped because of the mail count and they haven’t gone back to delivering priority on Sunday

Carol Cummings

He is still smoking the crack

Alan K Peters

So he’s not in the office but he has something to say yawn

Jackie O'Hara

Who

Mary Tuttle

The Amazon contract was signed just AFTER the 2015 mail count when my route was made an LLV route. In the 2016 mail count it did not include any first of the month mail, so I didn’t opt in. 2017 there was no mail count. So basically I was delivering Amazon packages for 3 years with no pay. My route went up 3 hours in the 2018 mail count. So who is correct?

Shannon Cole

Mine went up almost 4 hours 🙄 all that free wrk

Branden Burton

Should of counted in 2016.

Jo Kappus

Mary he’s not saying carriers made profit on Amazon he’s saying the postal service did

Ruth Porter

I delivered that crap for free for 2 years…the problem is with the morons making stupid decisions…js

Heather Phillips Casey

Right! You go girl!!

Craig Ross

Jo Kappus so the PO made a profit because carriers weren’t getting paid to carrier these pkgs. hmmmm

Mary Tuttle

Didn’t count in 2016 because I have a lot of businesses on my route and with no first of the month mail I was afraid I would go down even more. Went down 3 hours in 2015!

Matt Robbins

Was beneficial is the right term. Since 73 percent of the countries carriers increased the post office won’t be feeling the nice money flow of abused workers as of 4/28. They will have to raise rates on amazon no doubt.

Sara Stephens

Out of 17 rts and 1 aux rt, all went up and over a 47k but 5 rts.

Barbara Dunaway Clem

Hmmmmm maybe a plan to cut everyone back to 43 seems weird !!! And it’s not just your office , my rt lost 2 hrs !

Don Muraco

Piss off Pat you were a worthless PMG

Diana Harrell

And he’s still smoking crack🙄

Send this to a friend