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Trump is thinking about reforming the US Postal System: fighting Amazon and other e-commerce companies

via:博客园     time:2018/12/5 10:01:41     readed:1033

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Sina US stock news Beijing time On December 5, President Trump fulfilled his July promise to reform the US Postal Service (USPS), which he previously called Amazon's "Courier".

On Tuesday, the Trump administration issued a report recommending Trump's USPS task force to take a series of measures, saying that these measures are needed to generate more revenue for postal services that face profit challenges. According to reports, the postal service lost $3.9 billion in FY18.

The executive summary of the report states: “Although the US Postal Service does have pricing flexibility in its parcel delivery department, parcel pricing does not take into account profitability. USPS should have the right to charge market-based prices for mail and parcels that are not considered <basic services& rsquo;. ”

The report recommends that the US Postal Service divide mail and parcel shipments into basic services and business services. Many e-commerce shipments will fall into the latter, which are not protected by existing price caps and may increase rates.

A senior US government official said the postal service would be able to change the parcel rate without requiring Congress to pass the bill. But the move may require renegotiating a service agreement with Amazon and other companies.

Although the move is apparently aimed at Amazon's —— Trump warned of unfair business practices in July, but government officials have responded to these measures specifically targeting Amazon. A senior government official stated in an anonymous statement to Congress that “our findings or recommendations have nothing to do with any customer or competitor of the postal service,” rdquo;

The official added that all “e-commerce companies” involved in e-commerce, including Amazon, will be “affected by these reform proposals”.

However, Trump has been targeting Amazon …… for many years;

Trump made a special announcement in July, "Two months ago, Amazon's Washington Post lost the Internet tax lawsuit in the US Supreme Court. Since then, they have furiously opposed me. The next one is the US Post Office, which uses it as the "courier" for most of their packages, and the cost is only a fraction of the actual cost. ”

These changes are part of a plan that Trump launched when it called the US Postal Working Group in April. The report also covers other areas that the US Postal Service believes can improve its financial position.

It called on the postal sector to restructure employee retirement and advance payment of medical benefits, which the business group said was the main driver of its financial hardship. However, it did not support the bipartisan legislation to completely terminate early payment, saying that this would impose too much burden on taxpayers.

The Trump administration also recommended that the US Postal Service reform its internal management to allow the governor to set fiscal targets and allow the US Postal Regulatory Commission to have greater powers if the goals are not met.

I believe that Amazon will not pass on this change to their already overworked warehouse staff ……

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