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Trump task force proposes major Postal Service overhaul
CBS/AP December 4, 2018, 6:35 PM
Trump task force proposes major Postal Service overhaul
Last Updated Dec 4, 2018 9:35 PM EST
A task force created by President Donald Trump is proposing a broad overhaul of the U.S. Postal Service, including cutting costs, relying on private partners and charging more for "nonessential services," in a report released Tuesday.
The report recommends that the Postal Service develop a new pricing model that would remove current price caps and charge market-based prices for mail and packages that were not deemed to be "essential postal services." That recommendation could raise costs for Amazon and other major businesses that are currently using the Postal Service to supplement their delivery operations.
"Path to sustainability"
The report also warns that the Postal Service is "unsustainable and must be fundamentally changed if the USPS is to avoid a financial collapse and a taxpayer-funded bailout." ... Treasury Secretary Steven Mnuchin said the report "contains achievable recommendations" that would "fulfill the president's goal of placing the USPS on a path to sustainability."
Mr. Trump directed a review of the Postal Service's finances in April, after repeatedly accusing the mail carrier of subsidizing Amazon and losing money on its package delivery services. "Only fools, or worse, are saying that our money losing Post Office makes money with Amazon," Mr. Trump tweeted in April. ... Most economists disagree with that assessment. The report notes that "packages have not been priced with profitability in mind," but it didn't find that the USPS loses money on Amazon.
....
Trump task force proposes major Postal Service overhaul
Last Updated Dec 4, 2018 9:35 PM EST
A task force created by President Donald Trump is proposing a broad overhaul of the U.S. Postal Service, including cutting costs, relying on private partners and charging more for "nonessential services," in a report released Tuesday.
The report recommends that the Postal Service develop a new pricing model that would remove current price caps and charge market-based prices for mail and packages that were not deemed to be "essential postal services." That recommendation could raise costs for Amazon and other major businesses that are currently using the Postal Service to supplement their delivery operations.
"Path to sustainability"
The report also warns that the Postal Service is "unsustainable and must be fundamentally changed if the USPS is to avoid a financial collapse and a taxpayer-funded bailout." ... Treasury Secretary Steven Mnuchin said the report "contains achievable recommendations" that would "fulfill the president's goal of placing the USPS on a path to sustainability."
Mr. Trump directed a review of the Postal Service's finances in April, after repeatedly accusing the mail carrier of subsidizing Amazon and losing money on its package delivery services. "Only fools, or worse, are saying that our money losing Post Office makes money with Amazon," Mr. Trump tweeted in April. ... Most economists disagree with that assessment. The report notes that "packages have not been priced with profitability in mind," but it didn't find that the USPS loses money on Amazon.
....
Amazon actually helps money-losing USPS, but probably not for long
Zack Guzman Senior Writer, Yahoo Finance • December 6, 2018
https://twitter.com/zGuz
Zack Guzman Senior Writer, Yahoo Finance • December 6, 2018
https://twitter.com/zGuz
4 replies
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