It’s a good rant by the President, but the Postal Service doesn’t actually lose money on its Amazon business.
If I try shipping the same package with the same weight through the Postal Service it costs me a lot more money.
They don't lose $10,000 delivering the 200 packages in the bundle for Amazon. They lose it shipping my package at a "bargain basement" rate that is subsidized by Amazon.
When they deliver for Amazon on Sundays, they lose money. Period.
was an article years ago that Amazon makes over $1 per package sent through USPS. Amazon subsidized. to me that says likely adds up to a loss for USPS from that part of their business.
But its giving Amazon huge subsidies. Free use of trucks and USPS infrastructure. Any CFO worth his salt would tell the USPS that the overhead burden should be shared equally across all its operations.
It’s as if a major hotel started charging some of its guests only the direct cost for the maid, the daily water consumption, and the little bars of soap rather than the amortized unit cost for their debt and their executive, administrative, and sales staff.
I bet that would mean Amazon would pay only $49/night for its room. Sure, the hotel it isn’t “losing money on Amazon” but they would be seriously damaging its profitability by not charging $250/night.
Around here in Canada does it seem like those that do the delivery are various sub contractors? Meaning just some Jill and Joe Sixpack with a vehicle? Not sure how many products actually come to my door from Canada post?