Amazon forms U.S. Postal Service lobby group with other companies
Amazon forms U.S. Postal Service lobby group with other
companies
Reuters Staff AUGUST 1, 2018 11:34 AM
WASHINGTON (Reuters) - Amazon.com Inc and other retail
and logistics companies said on Wednesday they had started a new group to lobby
to keep the U.S. Postal Service’s package delivery services “reliable and
affordable.”
The announcement comes days before a task force set up by
President Donald Trump is due to recommend postal reforms to the White House.
Trump has said without evidence that the world’s largest online retailer is
making the postal service incur losses, mandating the task force review USPS
pricing on package delivery.
While Amazon has steered clear of any quarrel with the
president, the Package Coalition is now poised to take the company’s case to
the public as the government weighs changes affecting USPS.
“These companies just want to ensure that decisions are
made based on a clear understanding of what the facts are,” John McHugh, the
coalition chairman, told Reuters in an interview. “The package service portion
of the postal service’s business model is one of the few bright spots. It makes
money.”
McHugh, a former member of Congress who served as
chairman of the postal service subcommittee, said package rate hikes not based
on market prices could reduce demand and revenue for USPS, potentially
undercutting its ability to deliver to any address in the United States.
USPS has lost $65 billion since the 2007-2009 financial
crisis, according to the executive order establishing the postal task force.
The service, which is supposed to be self-sustaining, must ask Congress for
permission to raise rates and must pre-fund decades worth of retiree health
benefits.
Coalition members have already shared information with
the presidential task force, McHugh said. With the task force’s Aug. 10 report
deadline looming, the coalition’s focus at present is on broader government and
public outreach.
“Earlier today we sent out emails asking for meetings
with both House and Senate members,” said McHugh. “We view this as a long-term
effort.”
Members of the new group include Columbia Sportswear,
pharmacy benefits manager Express Scripts, the National Retail Federation,
package shipping firm OSM Worldwide, postal service company Pitney Bowes,
Publishers Clearing House and the retailer QVC.
“Without (the Postal Service), consumers would have fewer
shipping options, reduced service in rural areas, and prices would drastically
increase,” said Blair Anderson, director of transportation policy at Amazon.
Amazon did not respond to a request for further comment,
beyond the Package Coalition statement.
Reporting by Chris Sanders and Jeffrey Dastin, Editing by
Rosalba O'Brien and Tom Brown
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