Home » IT

Trump orders review of postal service after blasting Amazon

14 April, 2018, 20:16 | Author: Janis Wilson
  • Is'Cluster Box the future of postal mail delivery

Amazon founder Jeff Bezos also owns The Washington Post, which has been a frequent Trump target.

In fact, the Postal Service has lost money for years, but it actually makes money on package deliveries, with Amazon accounting for a large chunk of that. The task force is instructed to submit a report on its findings within 120 days. In this announcement, Trump said the postal service is "on an unsustainable financial path and must be restructured to prevent a taxpayer-funded bailout".

President Donald Trump late Thursday took his first concrete step toward changing the way the United States Postal Services operate after a weeks-long barrage of critical tweets over its relationship with e-commerce giant Amazon. The website Save The Post Office, however, recently did a lengthy analysis outlining how Amazon nearly certainly pays the postal service more than it costs to ship packages and that taxpayers are not subsidizing Prime's two-day free shipping. 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? The Postal Service then delivers the packages to their destinations.

Amazon relies on USPS for many of its last-mile deliveries and in 2013, the two struck a landmark deal to deliver packages on Sundays.

More news: Andre Ingram has dream National Basketball Association debut

"As we have repeatedly stressed, these business model problems are serious, but solvable, and the President's executive order. provides an opportunity to further consider these important public policy issues", the statement said.

Whether or not Amazon spurred the government audit, Schulman says its analysis of the Postal Service should be conducted as a part of routine business. Credit Suisse estimates this could amount to a hit of $1 billion to $1.8 billion to Amazon's bottom line. "Although we continue to win customers and grow our package business, these gains are not sufficient to offset continuing declines in our mail business, which is our main source of revenue and contribution", Postmaster General and CEO Megan Brennan said in February. In 2017 they brought in $19.5 billion, up 11.4 percent over the year prior.

Representatives from the Treasury Department, Federal Financing Bank, Office of Management and Budget, and Office of Personnel Management will sit on the task force. That appears to be working out for USPS, which said the growth in its package business was "a result of our successful efforts to compete in the ground shipping services and "last mile" e-commerce fulfillment markets, including Sunday delivery", in another financial report previous year.

The agency is also drowning in "higher than normal" costs of retiree benefits, including pensions and health care.

Recommended:



Popular

Kylie Jenner Sends Love to Khloe Kardashian After She Gives Birth!
Jordyn, a model and DJ flaunted her flat stomach in a Tommy Hilfiger sports bra and a high waisted red bottoms. The 20-year-old pushed Stormi around in a Fendi stroller while wearing a tight dress with the Fendi logo.

Israeli airstrike hits Gaza; Palestinian man reported killed
The protests, planned to last six weeks, are calling for Palestinian refugees to return to their former homes, now inside Israel. More than 30 Palestinians have been killed by Israeli gunfire since the start of "Flag Friday" demonstrations two weeks ago.

Kane awarded second goal against Stoke to close gap on Salah
I expect goals, but I think this will be open and entertaining, and can't entirely decide who will get the better of this one. That will delay the title party a little longer, but they are still going to win the league - it is just a matter of time.

Attention Gmail users: your emails might 'self-destruct' soon
As presented by TechCrunch , a small lock icon appears in the compose window for an email which represents " Confidential Mode ". The message behind the link disappears after some time, but this doesn't mean that the intermediate email also disappears.

Committee Retires Four 2017 Hurricane Names
If more than 21 storms form in one season, like in 2005, the Greek alphabet is used to name the additional storms. Hurricane Harvey killed 68 people in Texas alone and dumped historic amounts of rain on the city of Houston.

Seahawks Allegedly Plan Colin Kaepernick Workout, Postpone Over Anthem Kneeling
It has been reported that the NFL is crafting a new national anthem policy that likely would be implemented for the 2018 season. Colin Kaepernick is in the middle of a collusion case against the NFL over allegations that league owners have blackballed him.

New York Knicks fire Jeff Hornacek as head coach
This season, Stackhouse's club won the G League's Eastern Conference title but fell to the Austin Spurs in the finals. Nothing is imminent, but the New York Knicks will at least contact Jerry Stackhouse about the head coaching vacancy.

How a Steve Scalise promotion could help Louisiana, nation
McCarthy subsequently withdrew his bid, calling for a candidate that could get the support of all Republicans. Lawmakers and GOP donors want a leader who can raise money, and there McCarthy has an advantage.

Lady 'Cats win two games as season end nears
Rinus hammered a 0-2 offering to left-center three batters into the contest for an RBI double, breaking the scoreless tie. Kendall Meeks started on the mound for the first time in conference and threw four innings allowing three earned runs.

Instagram Will Soon Let Users Download All Their Photos, Videos and Messages
While its parent company faces a grilling on Capitol Hill, Instagram is rolling out some fun new features to keep users amused. The Instagram spokesperson did not reveal a specific launch date for the tool, but it will likely be rolled out before May 25.