Trump targets Amazon in call for postal service to hike prices

[Eugene]

Source: Reuters

#BUSINESS NEWS DECEMBER 29, 2017 / 8:19 AM / UPDATED AN HOUR AGO

Trump targets Amazon in call for postal service to hike prices

Makini Brice
4 MIN READ

WASHINGTON (Reuters) - U.S. President Donald Trump targeted Amazon(AMZN.O) on Friday in a call for the country’s postal service to raise prices of shipments in order to recoup costs, picking another fight with the online retail giant he has criticized in the past.

“Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!” Trump wrote on Twitter.

The U.S. Postal Service, which runs at a big loss, is an independent agency within the federal government and does not receive tax dollars for operating expenses, according to its website. The organization makes up a significant portion of the $1.4 trillion U.S. delivery industry. Other players include United Parcel Service Inc (UPS.N) and Fedex Corp(FDX.N).

Amazon was founded by Jeff Bezos, who remains the chief executive officer of the retail company. Bezos also owns the Washington Post, a newspaper that Trump has repeatedly railed against in his criticisms of the news media.

-snip-

Read more: https://www.reuters.com/article/us-usa-trump-amazon-com/trump-targets-amazon-in-call-for-postal-service-to-hike-prices-idUSKBN1EN15O

[Sophia4]

1. Trump does not understand the concept of serving the American people.

What if grandma can't afford higher package prices when she sends her grandchild a birthday or Christmas present

Is Trump suggesting that sending birthday and Christmas presents via Amazon is a privilege to be protected only for those who have a lot of money?

What a view of government. What is wrong with this man?

[Initech]

11. He thinks he's the president of Fox News viewers.

And has zero clue how the government or the system of checks and balances are supposed to work. He thinks Fox News talking points are the constitution.

[Wellstone ruled]

2. Trumps attack on

Washington Post is what this is all about.

[crazycatlady]

3. As someone who sells things online

For once, I kinda get where he's coming from. I've shipped 4 times this week and costs can add up (they're passed on to the customer). Int he day and age of Amazon Prime, People take shipping costs for granted.

Lucky my items are lightweight and can go first class. But the few I've had that aren't are almost half the cost of the item (if not more) to ship.

[oberliner]

4. Was there something on Fox and Friends about that?

Must've been.

[lunasun]

5. Letter stamps are going up this month. Get your forever stamps now and save $$

[continentalop2]

6. USPS only loses money because of republican sabotage

The repub congress under GWB I believe, passed a law requiring the postal service to pre fund their pensions for the next 50 years or something like that. It was purely a scheme to kill off usps and attempt to ultimately privatize it.

[louis-t]

8. It was 75 years and I believe it was to expire in 10 years.

Should have expired already. It was rushed through in lame duck period after repugs got their asses handed to them in 2006 election.

[continentalop2]

7. Some background on why the usps is really in financial trouble

https://www.uspsoig.gov/blog/be-careful-what-you-assume
https://www.nakedcapitalism.com/2015/10/the-right-wings-assault-on-the-post-office-smashing-the-myth-that-its-in-financial-trouble.html

[BiminiTwisted]

9. Amazon should simply exclude the USPS and ship everything via FedEx and UPS.

The genius businessman strikes again.

[TheBlackAdder]

10. Even if you use FedEx and UPS, a high probability USPS delivers it. Thanks to millions spent on lobbying.

.

That's called Final Segment Delivery. It's the way Companies Socialize Costs and Privatize Profits.


FedEX and UPS do not have the vehicles or manpower to perform many final segment deliveries.


What they do is lobby to cripple the USPS so they aren't a competitive threat to their next day services, but keep them viable enough to have the USPS perform the most costly portion of package delivery--that being the distribution center to the home or office. The post office makes one cent per package. That's right, just one cent profit.


The private carriers pocket the savings. Many USPS centers have a FedEx and UPS drop box and perform the receiving and sorting of packages, especially local ones. They will white label the packages, so you won't even know the private carriers never even touched the package and USPS did everything.


So, the private carriers use the quasi-government USPS to save money and stay viable, since neither of them could deliver the packages without huge equipment and labor expenses. They do this just a penny over USPS costs. But, they privatize the the profits that they bilk from their customers.

.