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Businesses Government The Almighty Buck United States Politics

Trump Personally Pushed Postmaster General To Double Rates on Amazon, Other Firms: Report (washingtonpost.com) 352

President Trump personally urged the leader of the U.S. Postal Service to double the rates the agency charges Amazon and other firms for delivery packages in several private conversations in 2017 and 2018, The Washington Post reported Friday (alternative source). From the report: Postmaster General Megan Brennan has so far resisted Trump's demand, explaining in multiple conversations occurring this year and last that these arrangements are bound by contracts and must be reviewed by a regulatory commission, the three people said. She has told the president that the Amazon relationship is beneficial for the Postal Service and gave him a set of slides that showed the variety of companies, in addition to Amazon, that also partner for deliveries.

Despite these presentations, Trump has continued to level criticism at Amazon. And last month, his critiques culminated in the signing of an executive order mandating a government review of the financially strapped Postal Service that could lead to major changes in the way it charges Amazon and others for package delivery. Few U.S. companies have drawn Trump's ire as much as Amazon, which has rapidly grown to be the second-largest U.S. company in terms of market capitalization. For more than three years, Trump has fumed publicly and privately about the giant commerce and services company and its founder Jeffrey P. Bezos, who is also the owner of The Washington Post.

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Trump Personally Pushed Postmaster General To Double Rates on Amazon, Other Firms: Report

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  • by b0s0z0ku ( 752509 ) on Friday May 18, 2018 @04:16PM (#56635052)
    Won't that just push Amazon to set up their own private courier services? Not that I feel sympathy for either side of this fight.
    • by bluefoxlucid ( 723572 ) on Friday May 18, 2018 @04:19PM (#56635080) Homepage Journal

      Firstly, they do have their own private courier service.

      Second, if USPS suddenly is pushed by the Administration or whatever upon which the Administration manages to lean, it will become more-expensive than FedEx, UPS, DHL, and so forth. The other clients will then go to those lower-cost providers. Then the USPS will go bankrupt, like the three casinos Trump managed to trash.

      • by Altus ( 1034 )

        Plus the service provided by the USPS is not nearly as reliable as the other providers. My previous employer tried moving from Fedex to a Fedex/USPS last mile solution and the result was a huge increase in missed deliveries. For amazon this might not be a big deal, the cost of replacing the lost items might not be higher than the saving of using USPS but for my employer, with a limited inventory of items that are produced in one off batches, it was unacceptable. If the cost of USPS goes up and the qualit

      • by superdude72 ( 322167 ) on Friday May 18, 2018 @04:56PM (#56635420)

        FedEx and UPS often just handle the long-haul portion of a shipment and rely on the USPS for delivery from a USPS distribution center to a customer. If the USPS goes away. FedEx and UPS will not take its place. We'll all just be stuck with very expensive, not very convenient shipping.

        • by Anonymous Coward on Friday May 18, 2018 @05:16PM (#56635544)

          People only look at what is right in front of them. Last mile delivery is the toughest and most expensive to coordinate. USPS owns that. USPS is public. Trump hates public services.

          Here's what's going to happen

          Trump "penalizes" USPS, cheerleaders are on his side. Amazon responds by furthering its last mile push. Amazon establishes independent and underpaid delivery drivers who run last mile using their own vehicles. Eventually Amazon will be pushed to use a fleet due to the same pressures uber is facing.

          USPS is pushed to the side leaving Amazon Road or whatever the fuck they'll call it to do the majority of last mile for the country. Trump and Bezos laugh together at a cocktail party years later about how they privitazed a public service and used the public dime to do it.

        • FedEx and UPS often just handle the long-haul portion of a shipment and rely on the USPS for delivery from a USPS distribution center to a customer.

          FedEx and UPS were doing that stuff, prior to an agreement which amounted to a bailout for the USPS which requires them to hand off most small packages to the USPS for final delivery. They do get something out of it, though; those packages can be delivered to mailboxes, unlike when FedEx and UPS drop them off, because the USPS has a monopoly on delivering to your mailbox.

      • by mark_reh ( 2015546 ) on Friday May 18, 2018 @05:24PM (#56635604) Journal

        What sort of "like, really smart... and very stable genius" manages to lose money in the gambling industry?

        • One that takes out a 600million$ loan(bonds) at ~16% interest, because banks wouldn't ouch them with a 10 foot pole..

        • Listen to the "Trump Inc" podcast.

          I don't think making money from the casinos was ever a central part of the plan.

        • It's really hard to lose money in the gambling business. You'd have to be very special to lose money in that business.

      • by thomn8r ( 635504 )
        Privatizing the USPS has been a Republican wet dream for years.
    • In several markets, Amazon already does have their own carrier services known as AMZL. They even market it out as a public courier service in India.

    • This is NOT news.

      Wake me up when he does something not boneheaded.

  • by jellomizer ( 103300 ) on Friday May 18, 2018 @04:19PM (#56635078)

    I am sorry the company CEO is hurting the Presidents fragile Ego. But shouldn't he be Mr. Business man? Who looks at the big picture and works to make profitable deals no matter what your personal feelings are to the other person? Just as long as Amazon and like companies are not being charged at a loss at such bulk rates this is money to the USPS system, that isn't going to its competitors of FedEx and UPS. Doubling the Rates will not hurt Amazon that much, It will just hurt the USPS because Amazon will just move to the next cheapest shipping method.

    • follow the money. I'll wager you'll find FedEx & UPS bribes of some kind behind this.
    • As a heavy user of Amazon, I really, really hope that a USPS rate hike convinces Amazon to stop using them. My package delivery has gotten much slower and less reliable since they started using USPS rather than UPS. I'd love to see them go back to using UPS and FedEx exclusively.

  • Demand curve (Score:5, Informative)

    by hawguy ( 1600213 ) on Friday May 18, 2018 @04:19PM (#56635086)

    You'd think that as a self-professed "businessman", Trump would understand how demand curves work -- if you double the price of a product, demand decreases, if other suppliers (UPS, Fedex, Ontrac, Amazon's own service, etc) can deliver for less, then the postoffice loses out on income for a business that costs very little to provide when they are already sending workers out to every address.

    Though I'd be happy to see Amazon stop using the USPS -- they are the least reliable of all of the other services Amazon uses, packages sometimes show up days after they were marked "delivered", or don't show up at all. I fairly often get packages meant for neighbors, I assume this is the source of the delayed packages.

    Fedex and UPS are the best, packages show up on time. Amazon's own delivery service has been ok, but seem to have a high number of rescheduled deliveries when they've run out of time to deliver. Maybe I'm on the end of the route.

    • Re: Demand curve (Score:5, Informative)

      by Anonymous Coward on Friday May 18, 2018 @04:24PM (#56635140)

      Trump isn't a business man. No business man worth his salt could lose money on a casino. He's also not pro business as we can see from this asking his many other feuds with the business community

      • Wasn't that casino mostly paid for by other investors? If you're a little bit crooked and play your cards right, you can make money on failures if you get other people to invest significant amounts.
        • Yup. Bonds at ~16% interest @600million. There's an absolutely zero chance that whole project wasn't about side deals and whatnot. There was never any way the casino was going to make enough to even cover the interest, roughly 8 million a month. .

    • Re:Demand curve (Score:4, Interesting)

      by DoktorMidnight ( 3469647 ) on Friday May 18, 2018 @04:34PM (#56635232)
      If that man has ever deigned to gaze upon a demand-curve (or any other form of graphed data) and actually understood it, then I am bear in the woods who is also the Pope.
    • Re:Demand curve (Score:5, Insightful)

      by Rick Schumann ( 4662797 ) on Friday May 18, 2018 @04:37PM (#56635256) Journal
      Trump is making policy decisions based on personal grudges and personal vendettas, his ego is blinding him to facts.
      • And making policy decisions based on personal grudges should be an impeachable offense and a criminal action.

        • If any POTUS is not acting in the interests of the United States then yes I'd agree with you. He's adding nails to his own political coffin.
      • Trump is making policy decisions based on personal grudges and personal vendettas, his ego is blinding him to facts.

        In Trumpland, there are no such things as facts, all that matters is he perceives himself as the winner and all blame falls elsewhere and thus the narrative must support that.

    • ... Though I'd be happy to see Amazon stop using the USPS -- they are the least reliable of all of the other services Amazon uses, packages sometimes show up days after they were marked "delivered", or don't show up at all. ...

      This may depend on where one lives and the mail box situation. Where I live we have community mail boxes that are locked when a package is delivered. Only the USPS has access to these boxes so there's some security involved. Packages aren't just dropped on the front step and stolen by people following the mail carrier or the mail carrier's truck. Not everyone has this advantage but I'd recommend groups of neighbors to set up community postal boxes. It's easy to do.

      I've never had a miss delivered package

    • He's not a businessman, but he plays one on TV.

      But seriously, he's not a businessman. He's a guy who inherited a fortune from his father, ran up debts, ran his businesses into the ground, and didn't pay his bills. He had become famous for being a failure until a reality TV show started selling him as a businessman. At that point, "Trump" started making a bunch of money for their branding, but claiming that Trump's company is making money because of his shrewd business judgement is like saying Disney mak

    • Fedex and UPS are the best, packages show up on time. Amazon's own delivery service has been ok, but seem to have a high number of rescheduled deliveries when they've run out of time to deliver. Maybe I'm on the end of the route.

      The USPS' biggest advantage is they go buy almost every US address everyday so they are perfect to use for the last mile. If Fedex or UPS could get all of Amazon's home deliveries they would be able to address the major issue with home delivery - widely varying routes so there is no way to optimize them. If they know in advance what packages are coming tehy can reduce a lot of that variance. Of course, there still is the "no one home must redeliver" but with Amazon locker they can address that as well. Furt

    • by Jeremi ( 14640 )

      Trump is not a businessman, he just plays one on TV. His actual profession (before politics) was money-laundering using sketchy real estate deals as a front. Pretending to be a "successful businessman" was just a useful way to explain where all that extra cash came from.

  • Congrats (Score:4, Insightful)

    by Anonymous Coward on Friday May 18, 2018 @04:21PM (#56635106)

    Congrats, USA. You have elected a petulant child to run the executive branch.

  • Sour grapes (Score:5, Insightful)

    by laughingcoyote ( 762272 ) <barghesthowl.excite@com> on Friday May 18, 2018 @04:26PM (#56635158) Journal

    The USPS is bringing in tons of money through their deals with companies like Amazon. They're not somehow getting screwed. Like in a lot of cases, if you're going to buy a large amount of a product or service, you can generally negotiate to get it at a lower bulk rate. That's not somehow unusual.

    It's essentially guaranteed business for USPS. If they double the rate, I'm sure FedEx, UPS, etc., will be quite happy to carry Amazon's packages instead, and the USPS will wind up being the one that loses.

    But, what's that matter when you've got an ego to feed? This never was about postal rates. This is about Trump not liking Jeff Bezos, because the Washington Post has the gall to call people's attention to it when Trump says something stupid.

  • by Rick Schumann ( 4662797 ) on Friday May 18, 2018 @04:34PM (#56635242) Journal
    This story about the U.S. Postal Service, Amazon/Jeff Bezos, and Donald Trump, is case-in-point as to why he never was Presidential material, why he is not a good President now, and why he never will be a good President, ever: Donald Trump is incapable of de-coupling his ego from his personality when it comes to his duty as President of the United States. The lies, the staffing choices based on personal loyalty and not personal integrity and aptitude, the grandstanding (attention whoring, basically), the temper-tantrums when he doesn't get his way, and decision-making based on personal grudges and personal vendettas (as is the case here specifically) are all anyone with two eyes and a functioning brain need to see that he is not now and won't ever be someone who should have been allowed to be elected in the first place. Never mind that he may well be at least as crooked as Tricky Dick or not (we may never really know, but boy oh boy does it look likely), or that he's flat-out incompetent politically (vis-a-vis Israel/Jerusalem), what we've seen since January 2017 is so far as I and so many others are concerned more than enough evidence that Donald J. Trump as POTUS was one of the worst electoral mistakes in the history of the United States, one that this country will spend decades living down with the rest of the world.
    • by OzPeter ( 195038 ) on Friday May 18, 2018 @04:52PM (#56635388)

      Donald Trump is incapable of de-coupling his ego from his personality when it comes to his duty as President of the United States.

      I basically said this on another forum a long time ago. My evidence at the time (which is still basically true) was that he initially posts stuff on *his* twitter account and then re-tweets on the POTUS account. Thus, in my opinion, he thinks of himself first and as POTUS second.

    • I see things like this and imagine if he was able to actually just do what he wants, unencumbered by the little checks and balances we have left.

      From just purely the words out of his mouth I could see us nearing third world status in a decade or two if he was left to his own devices. And I say that with not a bit of hyperbole.

      • Look at how many times his business ventures have gone completely bankrupt; that is what this country could very well end up looking like in your theoretical situation.
      • No, a decade or two is where you're headed now, at best. Without the checks and balances that were clearly designed with a level-headed adult in mind and have thus proven insufficient, it'd be a month or two. He would've transformed the place into a complete tinpot dictatorship in a matter of weeks. He would've brought all parts of the government and legislature under his control, nationalized the media and turned it into a Trump praise machine, instituted a command economy to enact his whims and satisfy hi

  • by Ichijo ( 607641 ) on Friday May 18, 2018 @04:51PM (#56635372) Journal

    ...then he should get the states to increase their diesel taxes and weight-mile taxes on trucks. But this would harm the oil industry which pays big money to politicians and so it will never happen.

  • So how has Amazon hurt trump in teh past? I have heard mention that it hurts him by de-valuing brick-and-mortar retail space that he is heavily invested in.

  • Bills of attainder are forbidden by the US Constitution. Federal regulations have the force of law, so no Donny, you can't fuck around with Amazon's contract with the USPS.

    Really, I understand he's not a lawyer, but he took an oath to protect and defend the Constitution of the United States, a document with which he is manifestly completely unfamiliar. I think there's a case to be made that he can be forced to at least read it once. While wearing his glasses that he refuses to wear in public, which is wh

  • Welcome Amazon Shipping and Postal Company.

  • Postmaster General Megan Brennan has so far resisted Trump's demand, explaining in multiple conversations occurring this year and last that these arrangements are bound by contracts and must be reviewed by a regulatory commission, the three people said.

    Yet another example of Trump encouraging illegal activities.

  • It's my understanding that USPS has something called a "bulk discount rate", and Amazon simply utilizes this when using the postal service. Why should Amazon now be prohibited from doing so, or is the proposal to remove the bulk discount rate entirely?

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