Most of their work will be tied to the Amazon contract, Duff said. The contract details are protected by privacy regulations, but some investment banks that track Amazon shares estimate that the post office delivers more than 40 percent of Amazon packages. “As part of our agreement with USPS, we are not disclosing details of the agreement,” Rena Lunak, Amazon`s senior public relations/transportation manager, wrote in an email response to questions. She confirmed that the contract started in 2013. Currently, Duff said, its employees include nine scheduled carriers and six “city carrier assistants” who replace and pick up Amazon cargo. Duff also monitors six “highway” routes delivered by contractors. Eight clerks sort mail and take care of walk-in clients. I recently wrote an article titled “Did Walmart Convince FedEx to Leave Amazon?” in which I argued that Walmart had trained FedEx to make the decision to terminate its express shipping agreement with Amazon. It`s no secret that the relationship between Amazon and FedEx has deteriorated as Amazon continues to expand its logistics business.

For several years, FedEx founder and CEO Fred Smith has repeatedly remarked that Amazon “does not pose a threat to FedEx.” But now, Smith has admitted that Amazon is indeed a competitor and has begun to highlight the growing threat posed by companies like Amazon that have created their own logistics capabilities. The president said in August that he deliberately underfunded the USPS to make it more difficult to vote by mail, but then appeared to change his position a few days later, tweeting, “Save the post.” He also protested the $10 billion in emergency funding the USPS received in July, though he could have gained something from that deal: it was granted in exchange for information about the agency`s most valuable private sector clients` contracts, which may have given him ammunition to show that the USPS is not financially responsible or that Amazon was at least partially responsible for its problems. Financial. According to documents obtained from the American Oversight watchdog group, Amazon made a profit of $1.6 billion and revenue of $3.9 billion for the USPS in fiscal 2019, with the postal service delivering $1.54 billion in packages for the e-commerce giant. That equated to about 30 percent of Amazon`s total volume last year, and according to the Post, revenue has increased this year. Other documents reported by the Washington Post describe tensions between Amazon and the U.S. Postal Service in contract negotiations. According to the Post`s report, the documents reflect Amazon`s uncertainty about the status of the U.S. Postal Service. They list questions from the company such as, “What will the USPS look like in the new weeks, months, and years?” The U.S. Postal Service made a $1.6 billion profit from Amazon in fiscal 2019 on $3.9 billion in revenue from doing business with the e-commerce giant. Amazon is a company of great thinkers.

In fact, one of Amazon`s leadership principles is “Think Big,” and the term is often used in the company. For Amazon to grow and take market share from Walmart and other retailers, Amazon needs to increase the size and reach of its network and logistics capabilities. Physical retailers are experts in moving pallets. Amazon has experience in shipping packages. As a result, Amazon needs more last-mile delivery capacity than traditional brick-and-mortar retailers. Amazon plans to invest an additional $800 million in its logistics network in 2019, but that`s not enough to give Amazon a competitive edge. Walmart and even The Home Depot are investing billions in their e-commerce and retail logistics capabilities. Again tit for tat. “To find out that Swiss Post has signed a contract for postal workers to deliver Amazon mail seven days a week makes me angry. I think they are doing slave labor of these people.

Amazon has entered into a contract with the postal service that they would add a delivery day on Sunday: no postal service parcels with postage will be delivered; these are just Amazon packages. You always arrive .m at 7:30 am.m., but you only organize and load packages into your truck. Then just deliver them. For a freight forwarder like Justin Carver, the contract is a blessing. “I love (overtime) hours, I love money,” he said, although he admits he`s a beginner, while some longtime postal workers are stressed by the changes. They are called during their days off and struggle with heavier mail than before. USPS does not lose money in its contract with Amazon. They made $1.6 billion last year from Amazon. There are many other problems.

One of them is that they were not allowed to raise FedEx prices and more. Amazon became its own largest parcel carrier last year, according to Rakuten Intelligence. Bank of America says it is the 4th largest delivery company in America, delivering 6.8 million packages per day in 2019. 1. Amazon has contracts with government agencies, including a 10-year contract with the CIA, to meet their cloud technology needs using AWS. Amazon is the favorite to win several pending cloud computing contracts for more government agencies in 2019. Hire Amazon to run USPS technology on AWS for 10 years. Internal USPS memos uncovered in Post reports show that “unfunded government mandates” harm the agency`s financial health more than any deal with Amazon, despite statements to the contrary by the president.

As the USPS and Amazon worked to negotiate a new deal this spring, internal memos warned that Amazon`s business could be lost to competitors if it raised interest rates too high. Amazon is destroying this country and the postal service. What company other than the postal service would sign a contract because they knew they would lose money. We are overloaded with the garbage they peddle and they have people who are addicted to crack like a crack. I have never bought or will never buy any of these. “Having 100 packages that you have to deliver when you deliver mail, it was Christmas in the late `90s and now it`s a daily thing,” Duff said. “I think the impact wasn`t quite expected when they took over the deal with Amazon.” But CEO Jeff Bezos is starting to pull out of the USPS — which is a major source of revenue for the quasi-state agency. In the spring of 2019, USPS parcel volume declined for the first time in nine years. These year-over-year declines continued until the coronavirus kept Americans in the house and ordered them online in March of this year. The USPS lost $8.8 billion in fiscal 2019, more than twice as much as in 2018.

But its losses are largely attributed to a 2006 congressional demand that the post office, pensions, and pre-financing retirees` health care cost decades in the future, not Amazon. Last year, these costs included a $320 million increase in pension benefit expenses and a $3.5 billion increase in employee compensation expenses, which was not offset by a 0.7% increase in revenues. The U.S. Postal Service, which receives no tax assistance, saw its revenue plummet after Americans quickly adopted emails and other digital replacement items for stamped mail. Around the same time, Amazon went beyond its original business — books — into all areas of retail and needed the type of drop shipping that the post office offers. .