President Donald Trump with his latest Twitter post has attacked Amazon again and have asked US Postal Service to charge Amazon more for delivering packages.
In his tweet, President Trump said “Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!”
Amazon regularly uses services of the US Postal Service to complete what it calls ‘last mile’ of delivery. The US Postal Service, which is already running in losses, drops off around 150 million packages at residences and businesses daily. According to David Vernon, an analyst at Bernstein Research who tracks the shipping industry, the US Postal Service delivers handled around 40 percent of Amazon’s total volume of delivery in 2015. He estimated that Amazon pays 2$ per package to the US Postal Service, which is much lesser than what it pays to UPS and FedEx.
Trump has frequently criticized Amazon and its Chief Executive Officer Jeff Bezos though is Twitter account. In August, Trump accused the organization of doing great damage to tax paying retailers, despite Amazon started collecting sales tax on production it sells directly in April.
The latest post from President Trump have made an impact on the investors though. Amazon’s stock have fell by 0.6 percent after the President Trump’s post.