Trump Admin Targets Amazon And Other E-Commerce Sites With Postal Reforms
by Tyler Durden
ZeroHedge.com
Tue, 12/04/2018
President Trump has followed through on a July promise to reform the US Postal Service (USPS), which he referred to as Amazon’s “Delivery Boy.”
On Tuesday, the Trump administration released a report that recommends a series of measures that the Trump’s USPS task force says are needed to bring in more revenue for the profit-challenged Postal Service, which reported $3.9 billion in losses during fiscal year 2018, according to The Hill.
“Although the USPS does have pricing flexibility within its package delivery segment, packages have not been priced with profitability in mind,” the report’s executive summary states. “The USPS should have the authority to charge market-based prices for both mail and package items that are not deemed ‘essential services.’”
The report recommends that the USPS divide its mail and package shipments into essential and commercial service categories. Many e-commerce shipments would fall into the latter category, which would not be protected by existing price caps and thus be subject to rate increases.
Senior administration officials say the Postal Service would be able to change package rates without an act of Congress. But such a move would likely require re-working negotiated service agreements with Amazon and other companies. -The Hill
While the move is clearly aimed at Amazon – which Trump warned in July over unfair business practices, administration officials have pushed back at the idea that the measures were specifically aimed at the company. “None of our findings or recommendations relate to any one customer or competitor of the Postal Service,” said one senior administration official in an anonymous statement to The Hill.
The official added that “all companies” dealing in e-commerce, “including Amazon,” would “be impacted by those suggested reforms.” -The Hill
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