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© Reuters.
Investing.com – The Internet shipping company Stamps.com (NASDAQ 🙂 dropped 56% Friday in afternoon trading after ending its exclusive relationship with United States Postal Service.
With customers expecting regular shipments on the same day and two days, the company said it needed to work with other competitors, ending its contract with USPS for more than 20 years.
"Our customers can no longer survive solely with USPS, and we do not see this as a viable option for the next five years," said Kenneth McBride, CEO, during the company's earnings conference call. Thursday. "So, basically, it was our principle, it's like what, this company can no longer be exclusive given the trends in the shipping market."
Stamps.com reported $ 3.73 per share on a turnover of $ 170.2 million, which was well above the forecast set by Investing.com. But sales are expected to decrease in 2019 due to the end of its revenue sharing agreement with the Post.
Elsewhere in the sector, FedEx (NYSE 🙂 lost 1.6%, while United Parcel Service (NYSE 🙂 decreased by 2%. Amazon.com (NASDAQ 🙂 was up 0.6%. The retail giant has disrupted the shipping industry because of its two-day delivery promise.
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