Trump's fight against Amazon looks like a shame after Stamps.com
The long-standing e-commerce partner of the US postal service dumped the post office this week.
Stamps.com CEO Ken McBride replaces FedEx, UPS, regional delivery services, Uber Delivery, and others. But Amazon takes the cake in terms of innovation in shipping in the e-commerce age, McBride told investors on a conversation Thursday evening.
"Amazon has a fantastic network they built around the world despite only 27 having gone to 40 aircraft," McBride said. "And they've built it in recent years, and they've built it with e-commerce in mind, and many other operators have networks that are much older."
Read more: It becomes clearer than ever that Amazon is developing a third-party logistics service to cut out FedEx and UPS now that Stamps.com has dumped USPS
It's hardly the first time Amazon , filed as a transport company earlier this month, has flare-ups with USPS. Last year, President Donald Trump reacted for months to the Amazon's use of USPS for parcel delivery. He claimed that Amazon was cleared by sending items at the post office's low cost.
"Amazon has the money to pay the fair rate at the post office, which would be much more than they pay right now," Trump told reporters last year. Trump has often disclosed his disgust with Amazon.
In fact, USPS lost $ 3.9 billion in fiscal year 201[ads1]8, according to a December 4 report from the US Postal System Working Group. Cumulative losses are approaching $ 70 billion.
Read more: USPS bleeds billions of dollars a year and it can sell the rights to your mailbox to win profits
It's almost not because of Amazon. A major contributor to the post office's woes is a law of 2006 under President George W. Bush around prefunding retirement benefits. That law required the USPS to decide how much it would spend on retirement over the next 75 years and quickly build a fund to cover everything.
Nevertheless, Stamps.com terminates its Exclusive partnership with USPS is likely to be a huge loss. As the post office e-commerce partner, Stamps.com generated $ 586.9 million in revenue in 2018, up 25% from 2017.
Stamps.com is now working with Amazon in Australia and the UK. McBride said he wants to extend that relationship to the United States in 2019.
Whatever the cause of the post office's financial accidents, the move from Stamps.com to end the post office collaboration is a clear warning shot against anti-Amazon battle Trump driver – and Trump's war against the founder Jeff Bezos (which he sometimes calls "Jeff Bozo" ).
