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Why the Post Office Gives Amazon Special Delivery
 [WSJ] A Citigroup analysis finds each box gets a $1.46 subsidy. It's like a gift card from Uncle Sam. Key point in article: Amazon is big enough to take full advantage of "postal injection," and that has tipped the scales in the internet giant's favor. Select high-volume shippers are able to drop off presorted packages at the local Postal Service depot for "last mile" delivery at cut-rate prices. With high volumes and warehouses near the local depots, Amazon enjoys low rates unavailable to its competitors. My analysis of available data suggests that around two-thirds of Amazon's domestic deliveries are made by the Postal Service. It's as if Amazon gets a subsidized space on every mail truck. Amazon does most of the shipping then deliver to local post offices for "last mile" delivery instead of their own brown trucks...What's the problem? Much more at link. Posted by: Seeking cure for ignorance 2017-07-15 |
| http://www.rantburg.com/poparticle.php?ID=492738 |