Donald Trump has again criticised Amazon, claiming the online retailer's contract with the US Postal Service (USPS) is costing taxpayers billions. In a series of tweets on Saturday, the US president alleged the USPS loses $1.50 on average per package delivered for Amazon, calling the arrangement a 'scam' that must stop.
However, federal regulators have consistently found the Amazon contract to be profitable for the USPS. The post office, an independent agency not funded by taxpayers, has seen double-digit revenue growth from package delivery, driven by e-commerce. Yet this has not offset rising pension and healthcare costs, nor declines in first-class mail and marketing mail, which together account for over two-thirds of postal revenue.
Trump's claims appear to be based on Wall Street analyses arguing the USPS uses outdated cost calculations. A 2017 Citigroup study suggested the USPS undercharges for parcels overall, but regulators have reviewed the Amazon deal annually and deemed it profitable.
The president's latest attack follows a report that he is 'obsessed' with Amazon. Its founder, Jeff Bezos, also owns the Washington Post, which Trump has labelled 'fake news' over its coverage of his campaign and the Mueller investigation. Amazon shares have previously fallen after presidential criticism.
While higher postal rates could hurt Amazon, which relies heavily on shipping, the company is expanding its own delivery network. Last year, it announced plans for a worldwide air cargo hub in Kentucky.
