USPS effectively subsidizes Amazon, undercharging them $1.46 a package on postage

Posted on July 15, 2017July 17, 2017 by 21cpw

A new report explains how the U.S. Postal Service has been practically subsidizing postage for large retailers like Amazon The Postal Service is barred by law from charging less than it costs to deliver a package But the report finds that they may be miscalculating the package side of their business In April, a Citigroup analysis…

OIG Report: Competition in Last-Mile Parcel Delivery

Posted on June 14, 2017June 14, 2017 by 21cpw

June 5, 2017 (RARC-WP-17-009) The parcel market has evolved rapidly over time, significantly altering the relationship among the players. The parcel market used to be a zero-sum game where growth in parcel delivery by one entity meant a reduction in parcel delivery by competing firms. Professor Panzar’s thereotical model shows that large parcel delivery companies…