- Washington Post sources say President Trump pushed U.S. Postmaster General Megan Brennan to double the rate charged to Amazon (NASDAQ:AMZN) and other companies to ship packages.
- Brennan has resisted, explaining that the arrangements are under contracts and need review by a regulatory commission.
- Brennan also explained that the relationship with Amazon is beneficial for the Postal Service.
- Amazon spent $21.7B on shipping in 2017, which includes sorting, delivery center, and transport charges. Analysts think the Postal Service delivers roughly 40% of Amazon packages.
- The Postal Service reported shipping and package income of $19.5B last year (+12% Y/Y) but lost money mainly due to first-class mail declines.
- Amazon shares are down 0.5% to $1,574.43.
- Previously: Amazon -4.3% after another Trump tweet (April 2)
- Previously: Amazon -1% on Trump tweet suggesting post office collusion (April 3)
- Now read: Amazon Go: Stores Worth Less Than Tech
Original article