Delivery

President Trump Creates Task Force To Look At US Post Office’s Finances

President Donald Trump, a few days after ratcheting up his attacks on Amazon, has issued an executive order Thursday (April 12) that will create a task force to look at how to improve the U.S. Postal Service.

According to the report in The Wall Street Journal, the president said the United States Postal Service is “on an unsustainable financial path and must be restructured to prevent a taxpayer-funded bailout,” in the executive order. While the order didn't mention its contracts with Amazon, the order did say part of the review will be to look at pricing in the delivery of packages markets. He said the Postal Service has to  “compete fairly in commercial markets.” In recent days Trump has been upping his criticism of Amazon, calling the U.S. Postal Service Amazon's “delivery boy” and dismissing  those who think the Postal Service makes money from Amazon as “fools.” He has also wondered if the White House could go after the eCommerce giant from antitrust and anti-competition grounds and has called The Washington Post, which is owned by Amazon CEO Jeff Bezos, a lobbying arm of the company. Amazon has chosen to stay silent in the wake of the Presidential tweets.

The Wall Street Journal noted in the report that the Postal Service has been losing money for years and that revenue from delivering packages has been increasing during the past few years. The Postal Service, noted the report, is prohibited from signing a contract that would result in it losing money. While some analysts think the Postal Service could charge Amazon and others more to make up for its pension liabilities and health costs, not many analysts agree that the Postal Service is losing money because of Amazon, noted the report.

The executive order also calls on the task force to look at pension liability and medical costs, as well as give it more flexibility to deal with pricing.

——————————

NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

TRENDING RIGHT NOW