Is Trump's 'Task Force' Targeting USPS Relationship With Amazon?

06 Décembre, 2018, 17:11 | Auteur: Auguste Feret
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The Trump administration created a "task force" to investigate how to keep the Postal Service from continually losing billions of dollars annually over the past 12 years, Fox Business Network correspondent Kristina Partsinevelos reported.

"Why don't we sell the postal service to Amazon?".

The task force blamed the decline in revenue on the rising popularity of digital alternatives to traditional letters and bills delivered by the Postal Service.

He said the task force review ordered by Trump last April had produced recommendations that would "fulfill the president's goal of placing the USPS on a path to sustainability". When the current law was written, it assumed package delivery would make up about 5.5 percent of Postal Service revenue, but the rise of e-commerce companies like Amazon has pushed that percentage to about 25 percent. "The USPS should have the authority to charge market-based prices for both mail and package items that are not deemed 'essential services, '" the task force said in its summary. "Most of the report's recommendations, if implemented, would hurt business and individuals alike", the union said in a statement.

Trump has repeatedly targeted Amazon and its CEO Jeff Bezos since he took office.

Cowen & Co, in a May report, said the Postal Service and Amazon were "co-dependent", but that Amazon went elsewhere for most packages that needed to arrive quickly.

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Online retailers Amazon and eBay participated in the report, according to the task force.

"I have stated my concerns with Amazon long before the Election".

Amazon, FedEx Corp and United Parcel Service Inc did not return requests for comment. The Postal Service reported a loss of $3.9 billion for its 2018 fiscal year, which ended September 30 - the 12th straight year the service has reported a financial loss.

Another recommendation would be to clearly define the Postal Service's "Universal Service Obligations", which would spell out the types of mail and packages for which a strong rationale existed for government support of deliveries. The report recommends separating commercial services as a non-essential category, which wouldn't be subject to price caps, and mandated delivery standards that apply to essential services such as person-to-person mail.

"The Package Coalition is concerned that, by raising prices and depriving Americans of affordable delivery services, the Postal Task Force's package delivery recommendations would harm consumers, large and small businesses, and especially rural communities", the group said in an emailed statement.

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