In fact, shipping and parcels were the only growth segment for the postal service and grew more than 50% in the third quarter ended June 30 to $8.3 billion in revenue, according to fiscal 2020 results released on August 7. Every other category of services has fallen in both volume and revenue, in part due to the coronavirus pandemic. The pandemic has increased costs, including personal protective equipment and paid sick leave, contributing to a net loss of $2.2 billion over this period, for example on the situation of the previous year. In its war against Walmart and other retailers, Amazon`s takeover of the U.S. Postal Service would be seen as a nuclear option because of the massive impact on the companies Amazon competes with most. Emily Cegielski for Observer The terms of the postal service delivery contract with Amazon are confidential, but USPS has repeatedly said it is not losing money because of the deal. In addition, the post office must bear its costs in its commercial activities of parcel delivery, in accordance with the law. Amazon regularly uses the postal service to complete what`s known as the “last mile” of delivery. USPS has been losing billions of dollars a year for more than a decade, as people use emails and other online services to match, in addition to their dependent pension obligations.
But its commercial parcel delivery service, which includes deals with companies like Amazon, FedEx Corp. and United Parcel Service Inc., is lucrative, the Post office and lawmakers said. The reality is that the modern postal service has been set up in such a way as to be a hybrid – partly a government authority with a universal service mission, partly a private company with the mission of not losing money, under the control of an independent regulatory authority who has the task of ensuring that the two missions are kept in an adequate balance. Unfortunately, this is a reality far too complicated for our president to understand. Trump — who is facing accusations from Democrats that funding cuts and operational changes to the mail office are aimed at preventing email votes from being counted for Democratic challenger Joe Biden — claimed in an interview Monday with Fox News that Amazon was “perhaps the biggest problem with the mail,” due to the losses that the service takes care of when delivering packages. . . .