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Everything posted by b_m_b_m_b_m
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In 2018 the treasury department couldn't prove that Amazon is getting a deal that the USPS is losing money on. By law the competitive services business, i.e. package delivery, must not lose money, and rates, volume, and $$ keep going up. There are ways that Amazon benefits from the USPS, though, specifically with them having to deliver to every address in the US. Last mile rural delivery can be relatively unprofitable and is the same cost as urban and suburban delivery where Amazon is displacing third party delivery services. Urban and suburban delivery is also where the vast majority of deliveries take place, and any increase in cost to Amazon may end up costing more in volume and $$ in these areas than gained from a cost increase because Amazon is both a customer and competitor. The USPS can't have a two tiered cost system because congress has mandated flat rates. Fwiw, ups and FedEx do the same thing. If you want to fix the USPS, you have to have congress do so. They need flexibility in how to generate revenue from non-postal activities (postal banking for example), which congress has mandated they can't do, they need flexibility in how to cost rural delivery to large customers, which congress has mandated it can't do, and it needs flexibility or loosening of it's onerous requirements in how it funds it's pension and health programs for retirees, which congress has mandated it can't do. Or have congress make at least some package delivery a monopoly for the USPS. Otherwise the design of the post office is to subsidize rural delivery with profitable urban and suburban routes. And having a customer who is also a competitor on the profitable routes undercuts this model, but again, this isn't a fault of the USPS, but on congress and Amazon respectively.
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I hate you so much Canada. This is so good.
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