Next blow to the Postal services- Trump orders a review on it after attacking Amazon.

In his newest attack on Amazon, Trump has asked for a search on the Federal task force to investigate for the Postal services finances.

He is also very unhappy the way Amazon is handling the postal services. Trump is of the view that Amazon is taking undue advantage of the services and the US citizens are losing in the same.

Is not the postal servers government services agency?

The postal services are a government services agency, but it also supports and operates as an independent business entity and has lost over 65 billion dollars over the last 11 fiscal years. Trump is of the view that the United States postal services should work under a sustainable business model and provide all the necessary mail services to the citizens and the businesses.

Trump also made a tweet that the Postal services was losing out on services of Amazon and on the package, it delivers for Amazon.

What is Amazon’s say in this?

Amazon has entered into a confidential agreement where it delivers many packages and the Postal services delivers the packages to the other destinations.

Such laws also have various negotiated contracts and cover the Postal services costs such as shipment and various volume deliveries.

It also has a special agreement clause to deliver on Sunday in some of the limited major markets. However, none of the details have been reveled by Amazon and neither the postal services.

Many of the post office competitors have also challenged the claim saying that they have negotiated the deal with the bulk shippers and of the different costs which cover the money.

The post office problems are caused by many factors such as –

Very high declines in the US first mail.

Inflexible costs.

Different revenues

The business model problem is a solvable one and the one which is repellent with many issues.

The Postal services also issued a statement as these business models are very serious and need a lot of revamping also but there is nevertheless no need of changing as the President’s order is completely solvable and gives a chance to explore and further implement different policies.

 

 

 

 

 

 

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