stock falls after the end of its partnership with the US Postal Service


The company said that Amazon was disrupting the shipping industry and that it had to conclude transport contracts with postal competitors in the future.

Amazon has popularized shipping in two days with its Prime service and says its customers require two-day shipping guarantees. FedEx (FDX), UPS (UPS) and DHL offer these guarantees. The post office does not do it.

"One of our non-negotiable elements is that … we will no longer be exclusive to the USPS," said CEO Kenneth McBride, in an interview with analysts Thursday night. "USPS has not agreed to accept these terms or conditions of our partnership proposal."

McBride stated that had chosen to terminate its shipping partnership with the postal service in order to "fully adhere to partnerships with other carriers that we believe would be well positioned to win in the future. the shipping sector in the next five years ".

USPS declined to comment on the news. (STMP) Mr. McBride nevertheless stated that the decision to terminate the exclusive agreement would result in "some short-term difficulties for us in the next few years". He added that the turnover is expected to decline to 8% this year. Analysts predict that sales will increase by more than 16%. McBride said that one of the main reasons made the decision to terminate the postal service partnership was Amazon (AMZN) declaring publicly that he will enter the delivery business.

"Amazon's history of disrupting an industry is well established, so their threat should be taken very seriously by all players in the shipping industry," she said. he declared. "We define our business strategy assuming that Amazon will become a major global player in shipping."

The company warned investors that its revenue and profit for 2019 would be well below previous expectations.


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