"Amazon is the USPS's largest customer, accounting for 15 percent of its volume and $6 billion in revenue. A two-thirds cut would have been a disaster for the USPS, but a 20 percent reduction could still result in more than $1 billion in lost revenue."
"Our goal was to increase our volumes with USPS, not reduce them - until USPS abruptly walked away at the eleventh hour in December."
"The Postal Service decided to re-engage with Amazon after bids from several Amazon rivals fell short of its volume and revenue expectations."
Amazon threatened to cut USPS deliveries by two-thirds earlier this year, but a new agreement has been reached to reduce deliveries by 20%. This reduction will still result in over $1 billion in lost revenue for USPS. Amazon, the largest customer of USPS, relies on the postal service for rural and last-mile deliveries. The new agreement is pending approval from the federal Postal Regulatory Commission, following a period of negotiation breakdown and a new bidding process initiated by USPS.
Read at Engadget
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