Trump Orders Review Of Postal Service's Operations

Trump Orders Review Of Postal Service's Operations

Although Amazon isn't named in the order, Trump has repeatedly accused the e-commerce giant of owing billions to the US Postal Service.

So when this executive order comes after a particularly intense week of Amazon bashing from @realDonaldTrump, and when the first item on the task force's evaluation list is "the expansion and pricing of the package delivery market and the USPS's role in competitive markets", you have to wonder. "The U.S.P.S.is on an unsustainable financial path and must be restructured to prevent a taxpayer-funded bailout".

However, social media posts reveal there's more to the story. Is this executive order motivated by the desire to preserve a vital American institution, or the need to inflict corporate harm on a presidential enemy?

Trump has tweeted wrongly that "Only fools, or worse, are saying that our money losing Post Office makes money with Amazon" and has promised, "this will be changed".

The full details of Amazon's deal with the USPS aren't public; estimates suggest it pays about $2 per package.

The Washington Post reported per-package costs work out to roughly half the standard rate charged by other big shippers.

Amazon regularly uses the Postal Service to complete what's called the "last mile" of delivery, with letter carriers dropping off packages at some 150 million residences and businesses daily.

Trump's advisers said his outbursts about Amazon often were triggered by what he perceives as negative coverage of him by The Washington Post, owned by Bezos.

More news: Knicks dismiss Jeff Hornacek; candidates include David Fizdale, David Blatt, Mark Jackson

While the Postal Service's board isn't directly involved in negotiating contracts like the one that exists between Amazon and the U.S.P.S., it does consult with Congress on laws that could improve how its business operates.

"The Post Office should be doing these things anyway", said Schulman. "Really, they should do this fairly regularly".

The task force will be chaired by Treasury Secretary Steven Mnuchin, with help from the directors of the Office of Management and Budget and Office of Personnel Management.

President Donald Trump has directed a presidential task force to study the United States Postal Service and how it prices packages.

Citigroup past year found that Postal Service prices would have to go up by $1.41 per package - about 40% - to reflect the true cost of delivery for all its customers.

As for Amazon, war of words aside, the tech behemoth actually does significant work with the government, securing a big cloud contract with the Central Intelligence Agency and is in the running for a possible contract with the Pentagon.

"Amazon's future is really bright regardless of what happens with government contracts coming up", he continued.

Related Articles