Monday, July 23, 2018

Bezos’ Newspaper Covers for Bezos’ Company’s Controversial Deal With USPS

President Trump hates Jeff Bezos, so he is pressuring the Postal Service to increase the rates it charges Bezos’ Amazon firm to deliver packages regardless of the damage to its bottom line, according to a story, based solely on anonymous sources, in the Bezos-owned Washington Post.

“President Trump has personally pushed U.S. Postmaster General Megan Brennan to double the rate the Postal Service charges and other firms to ship packages, according to three people familiar with their conversations, a dramatic move that probably would cost these companies billions of dollars,” wrote Damian Paletta and Josh Dawsey in their story, “Trump personally pushed postmaster general to double rates on Amazon, other firms.”

Brennan has tried to talk Trump out of it, telling him the relationship is “beneficial” for the Postal Service, showing him slides and claiming the contracts can’t be undone and that any changes must be approved by the Postal Regulatory Commission, according to the three anonymous sources.

A study by Citibank found the Postal Service charges Amazon $2 per package for last-mile delivery but that it incurs costs of $3.46 per package for these deliveries, meaning it loses $1.46 for every package it delivers for Amazon.

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