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The long-time e-commerce partner of the US Postal Service has emptied the post office this week.
Stamps.com CEO Ken McBride is turning to FedEx, UPS, regional delivery services, Uber Delivery, and more. But Amazon is taking the cake for innovation in shipping at the e-commerce era, McBride told investors at a phone call Thursday night.
"Amazon has an incredible network that they have built around the world, while they only had 27 out of 40 planes," McBride said. "And they've built it in recent years and have designed it for e-commerce and many other operators have much older networks."
Read more: It is becoming increasingly clear that Amazon is developing a third-party logistics service to overtake FedEx and UPS now that Stamps.com has emptied USPS
This is not the first time that Amazon, which started its transportation business this month as a transportation company, has problems with USPS. Last year, President Donald Trump criticized for months the use of USPS by Amazon for parcel delivery. He argued that Amazon cleaned by shipping goods thanks to the low postage costs.
"Amazon has the money to pay the right rate at the post office, which would be a lot more than what they currently pay," Trump told reporters last year. Trump has often made public his disgust with Amazon.
Indeed, the USPS lost $ 3.9 billion during the 2018 fiscal year, according to a December 4 report from the Working Group on the US Postal System. Its cumulative losses are close to $ 70 billion.
Read more: USPS is bleeding billions of dollars a year and could sell rights to your mailbox to generate profits
This is hardly because of Amazon, however. A 2006 law passed by President George W. Bush on the benefits of early retirement is a bigger contributor to postal woes. Under this law, the USPS was to determine the amount of pensions it would spend over the next 75 years and quickly build a fund to cover all of these expenses.
Nevertheless, the end of its exclusive partnership with USPS by Stamps.com is likely to be a major loss. As a postal e-business partner, Stamps.com generated revenues of $ 586.9 million in 2018, an increase of 25% over 2017.
Currently, Stamps.com is working with Amazon in Australia and the UK. McBride said he wants to extend this relationship to the United States in 2019.
Whatever the cause of the financial problems of the post, Stamps.com's move to end its partnership with the Post is a clear warning against Trump's anti-Amazon battle – and Trump's war against its founder Jeff Bezos (who sometimes calls "Jeff Bozo").
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