Amazon.com Inc (AMZN.O) and other retail and logistics companies said on Wednesday they had started a new group to lobby to keep the U.S. Postal Service's (USPS) package delivery services "reliable and affordable."
The announcement comes days before a task force set up by President Donald Trump is due to recommend postal reforms to the White House. Trump has said without evidence that the world's largest online retailer is making the postal service incur losses, mandating the task force review USPS pricing on package delivery.
While Amazon has steered clear of any quarrel with the president, the Package Coalition is now poised to take the company's case to the public as the government weighs changes affecting USPS.
McHugh, a former member of Congress who served as chairman of the postal service subcommittee, said package rate hikes not based on market prices could reduce demand and revenue for USPS, potentially undercutting its ability to deliver to any address in the United States.
USPS has lost $65 billion since the 2007-2009 financial crisis, according to the executive order establishing the postal task force. The service, which is supposed to be self-sustaining, must ask Congress for permission to raise rates and must pre-fund decades worth of retiree health benefits.
https://mobile.reuters.com/article/amp/idUSKBN1KM5X0
The announcement comes days before a task force set up by President Donald Trump is due to recommend postal reforms to the White House. Trump has said without evidence that the world's largest online retailer is making the postal service incur losses, mandating the task force review USPS pricing on package delivery.
While Amazon has steered clear of any quarrel with the president, the Package Coalition is now poised to take the company's case to the public as the government weighs changes affecting USPS.
McHugh, a former member of Congress who served as chairman of the postal service subcommittee, said package rate hikes not based on market prices could reduce demand and revenue for USPS, potentially undercutting its ability to deliver to any address in the United States.
USPS has lost $65 billion since the 2007-2009 financial crisis, according to the executive order establishing the postal task force. The service, which is supposed to be self-sustaining, must ask Congress for permission to raise rates and must pre-fund decades worth of retiree health benefits.
https://mobile.reuters.com/article/amp/idUSKBN1KM5X0