US President Donald Trump reiterated his belief that Amazon is responsible for the demise of the US Postal Service on Monday.
Trump had made the same statements last April, after a series of attacks on the company in 2018, when he claimed that Amazon had cost the US Post Office “billions of dollars.”
It is believed that even with Trump being right the postal service is losing money, but Amazon and other online e-commerce companies are not necessarily responsible for this. If found Previous CNBC analysis Amazon may be saving the post office from financial demise, due to the growth in parcel shipping from online retailers. Amazon also relies on a group of carriers to deliver packages, such as: (UPS) and (FedEx) FedEx, and it is increasingly building its own network of contracted delivery partners, which now totals 1,300 companies.
The main factor behind the Post Office’s persistent deficit is believed to be the requirement that the U.S. Postal Service fund health benefits for its workers, which cost more than $ 5 billion annually. Other labor related expenses fluctuate; Such as: workers compensation, from year to year based on “changes in insurance assumptions, such as: interest rates, inflation, demographics of employees and retirees,” according to what the US Postal Service said in its 2019 annual report.
The Postal Service has benefited from an increase in parcel deliveries to Americans who stayed home due to the COVID-19 pandemic, but has seen a steady decline in first-class and business mail, according to its recent financial results.
The president was asked on Fox News about concerns that the Trump administration might intervene in the post office in order to influence the vote in the presidential election next November. The Postal Service has removed hundreds of mail-processing machines across the country and has warned dozens of states that they may not be able to process ballot papers in the mail in time to be counted in the Nov.3 presidential election. Meanwhile, the service is facing widespread delays in the mail and has seen an increase in its financial woes as a result of the coronavirus pandemic.
Trump said the post office could solve its financial woes by raising delivery rates to offset the alleged delivery costs fueled by online retailers. Trump added; In an apparent reference to the CEO of Amazon (Jeff Bezos): “This guy is supposed to be very rich, so let him pay for it.”