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Stamps.com shares plummet after closing partnerships with the US postal service



The company says that Amazon is interfering with the shipping industry, and it must make freight deals with postal service providers entering the future.

Amazon has popularized two-day shipping with its Prime service, and Stamps.com says customers require two-day shipping guarantees. FedEx ( FDX ) UPS ( UPS ) and DHL offer these guarantees. The post office doesn't.

"One of our unapproved items is that … we will no longer be exclusive to USPS," CEO Kenneth McBride said in an interview with analysts on Thursday night. "USPS has not agreed to accept these terms or any other terms of our partnership proposal."

McBride said Stamps.com chose to terminate its freight partnership with the postal service to "fully embrace partnerships with other carriers that we believe will be well positioned to win in the shipping business over the next five years."

USPS refused to comment on the news.

Stamps.com ( STMP ) Still allow customers to print stamps, but McBride said that the decision to terminate the exclusive agreement will cause "some short-term pain to us. the next few years. "
He said it now expects revenue to fall as much as 8% this year. Analysts forecast had expected sales would grow by more than 1
6%. McBride said an important reason why Stamps.com made its decision to terminate the postal service partnership Amazon ( AMZN ) who announced that it would enter the delivery business itself. 19659005] "Amazon's record to disturb an industry is well established. So their threat should be taken very seriously by every player in the shipping industry," he said. "We set up our corporate strategy provided that Amazon will be a major global player in shipping."

The newsletter sent shares that doubled to 58% in morning trading before climbing off the low of the day.


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