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Post Office Agreement With Amazon

In addition, Amazon would have access to 158,600,000 delivery points; 231.843 Supply Routes; 232,372 delivery vehicles; 634,447 employees; $70 billion in annual sales. In other words, Amazon would become the owner of the largest Last Mile delivery network in the United States. Giving Amazon flexibility, streamlining USPS staff, closing and relocating post offices, building and opening combined retail/postal sites, and expanding the reach of USPS services would solve the current problems facing the U.S. postal service. Here are more ideas on how to make the USPS more efficient. “They bring a lot of that mail to areas they`ve never been able to go to because the postal system is massive,” he said. Amazon leaves “thousands of packages in the mail.” For a carrier like Justin Carver, the contract is a blessing. “I like (overtime) hours, I like money,” he said, although he acknowledges he`s a newcomer, while some longtime shift workers are stressed by the changes. They are called their days off and compete for more heavy mail than before. And while mail limits the size and weight of the items it will provide, some wrapped pallets that have been dropped for local delivery contain surprises in the mix: a generator, large furniture, even a sink, she recalls. The service, funded entirely by port and services and has been fighting financially for years, is a frequent target of President Donald Trump. He says he`s not asking enough to deliver packages to retailers like Amazon, whose founder and chief executive Jeff Bezos also owns the Washington Post, which criticized the president. The reality is that the modern postal service was created as a hybrid – a government agency charged with a universal service mission, part of the private enterprise with the mission of not losing money, controlled by an independent regulator that has the mission to ensure that the two missions are kept in balance.

Unfortunately, this is a reality that is far too complicated for our president to understand. As Amazon customers were looking forward to a fast delivery, the postal service, which had lost employees, had to juggle schedules to allow delivery seven days a week. “Certainly, with their popularity and the amount of parcels that are shipped, amazon has actually been a vital artery for mail in many ways,” Hottovy said. As early as 2018, when Trump repeatedly blamed the deal on the postal problems, two senior Democratic lawmakers said they had checked the deal with Amazon, that retailers shipping packages were a rare glimmer of hope for the postal service. To solve his problems, I think Amazon should proactively turn to Trump to find a solution to make the USPS more efficient and eliminate the significant revenue losses from the mail. The USPS has lost $69 billion since 2007 and will continue to lose money if there are no major reforms. The agency has $110 billion in unfunded debt for pensions and health care, and its staff receive more and more pension benefits each year. In the absence of major restructuring, the USPS is expected to lose tens of billions of dollars over the next decade.

The Government Accountability Office (GAO) has put the USPS on the “high risk” list because of its gloomy financial outlook. Of all the problems on Trump`s radar, solving the U.S. Postal Service`s conundrum should be one of his top priorities. “This is particularly true in pretty much the order of Amazon`s relationship with USPS,” Farhi said. “Amazon is a big part of USPS revenue that if USPS lost it, it would significantly reduce its revenues without substantially reducing their fixed costs.” Amazon cleaning up the USPS is not a fantasy. If Jeff Bezos decides to work with Trump and members of Congress, Bezos could negotiate a deal that would eventually make Amazon take over the United States.