Amazon and the Post Office

[Guest TankerHC]

Had forgot about this, havent seen it posted and just remembered when I took my mail out of the box. Heard a blurb on the radio Friday that Amazon and the USPS are teaming up to offer Prime members mail service on Sunday. (No joke)

 

They said it will begin on a test rollout next week in San Francisco and New York. 

 

 

[Guest Razz]

http://www.foxnews.com/us/2013/11/11/amazon-us-postal-service-team-up-to-deliver-on-sundays/

http://youtu.be/uB5K4i2EWH8 Edited November 18, 2013 by Razz

[MacGyver]

They need all the paying customers they can get.

While I'm generally for taking a needed day of rest on Sunday personally, I'd rather them come up with some strategies to get in the black on their own as opposed to us bailing them out.

Profitable market. Paying customer. Good service to their customers. Hard to find something wrong with it.

Of course, I'm sure someone's going to get their feelings hurt that they can't get their stuff on Sunday outside of these major markets.

[Links2k]

They need all the paying customers they can get.
While I'm generally for taking a needed day of rest on Sunday personally, I'd rather them come up with some strategies to get in the black on their own as opposed to us bailing them out.
Profitable market. Paying customer. Good service to their customers. Hard to find something wrong with it.
Of course, I'm sure someone's going to get their feelings hurt that they can't get their stuff on Sunday outside of these major markets.

The USPS wouldn't need a bail out if congress wasn't requiring them to pre-fund retirement. No one else has the requirement. This is not directed at you MacGyver, but I wanted to remind some people before they get started...the USPS does not receive our tax dollars.

[101]

The USPS wouldn't need a bail out if congress wasn't requiring them to pre-fund retirement. No one else has the requirement. This is not directed at you MacGyver, but I wanted to remind some people before they get started...the USPS does not receive our tax dollars.

This statement is 100% true. The post office has not received one dollar in tax money since the mid '70s.

The only money the USPS gets from the government of any level is reimbursement for mailing overseas election ballots to deployed military personnel. The post office foots the bill first then turns in the cost to Uncle Sam.

I wish they would post this information all over the news for the next ten years because I'm tired of hearing it and tired of trying to explain it to those that think the post office is tax payer funded.

[Guest TankerHC]

They need all the paying customers they can get.

While I'm generally for taking a needed day of rest on Sunday personally, I'd rather them come up with some strategies to get in the black on their own as opposed to us bailing them out.

Profitable market. Paying customer. Good service to their customers. Hard to find something wrong with it.

Of course, I'm sure someone's going to get their feelings hurt that they can't get their stuff on Sunday outside of these major markets.

 

 

According to the news report, the full rollout (Nationwide) will be complete by February. Glad its happening. 

[Guest TankerHC]

This statement is 100% true. The post office has not received one dollar in tax money since the mid '70s.

The only money the USPS gets from the government of any level is reimbursement for mailing overseas election ballots to deployed military personnel. The post office foots the bill first then turns in the cost to Uncle Sam.

I wish they would post this information all over the news for the next ten years because I'm tired of hearing it and tired of trying to explain it to those that think the post office is tax payer funded.

 

One thing left out of a a couple of above comments. This is true, the post office is supposed to be self supporting. Here is the problem. The Postmaster was given little leeway in adjusting the 2006 retirement funding law by Congress, PRE-FUNDING FOR 75 YEARS. No entity or company has to do that.  Instead the Postmaster failed to keep up with obligations, allowed debt to grow to 46 billion and when it came time to pay (Under the law) they couldnt even afford to make the 5.6 billion dollar payment. (Unfunded liabilities, Chicago ring a bell? Poor management). 

 

Taxpayer funded or not it is still run by the Federal Government, the Postmaster General is a Federal Employee and is, in fact the second highest paid employee in Government. They took away the power of the President to appoint the Postmaster General, yea right. The Postmaster General is appointed by a Board of 9 Postal Governors, the President appoints all 9. 

 

BTW, Link and 101, this is in agreement with you, I am just pointing out the ridiculousness of the Federal Government financially gutting the most (Probably the only) profitable part it has ever known with a ridiculously long (75 year) refunding and basically eating up every bit of profit this entity makes. Even if they would have taken every single dime of profit to pay the prefunding payment this year, they would have still been half a million short. 

 

The USPS needs to be sold and COMPLETELY privatized. Working in conjunction with Amazon in my opinion is a step in the right direction, at least to becoming profitable again. Maybe they can catch up with that 46 billion dollar liability to fund retirement for people who will not even be born for another 15 years so the Federal Government can find another way to gut them. 

 

The Post Office worked just fine until Congress got their greedy hands in the mix. 

Edited November 18, 2013 by TankerHC

[MacGyver]

The USPS wouldn't need a bail out if congress wasn't requiring them to pre-fund retirement. No one else has the requirement. This is not directed at you MacGyver, but I wanted to remind some people before they get started...the USPS does not receive our tax dollars.

Agreed.

If congress would allow them to make the decisions they need to run the place appropriately, we wouldn't be having this conversation. As long as they keep putting unrealistic expectations on the table, they've got no way to succeed.

[Guest Razz]

I think saying the USPS hasn't received tax payer money is a stretch. Borrowing billions from the US Treasury with no plan to pay it back sure sounds like receiving taxpayer money, to me...

[Links2k]

One thing left out of a a couple of above comments. This is true, the post office is supposed to be self supporting. Here is the problem. The Postmaster was given little leeway in adjusting the 2006 retirement funding law by Congress, PRE-FUNDING FOR 75 YEARS. No entity or company has to do that.  Instead the Postmaster failed to keep up with obligations, allowed debt to grow to 46 billion and when it came time to pay (Under the law) they couldnt even afford to make the 5.6 billion dollar payment. (Unfunded liabilities, Chicago ring a bell? Poor management). 
 
Taxpayer funded or not it is still run by the Federal Government, the Postmaster General is a Federal Employee and is, in fact the second highest paid employee in Government. They took away the power of the President to appoint the Postmaster General, yea right. The Postmaster General is appointed by a Board of 9 Postal Governors, the President appoints all 9. 
 
BTW, Link and 101, this is in agreement with you, I am just pointing out the ridiculousness of the Federal Government financially gutting the most (Probably the only) profitable part it has ever known with a ridiculously long (75 year) refunding and basically eating up every bit of profit this entity makes. Even if they would have taken every single dime of profit to pay the prefunding payment this year, they would have still been half a million short. 
 
The USPS needs to be sold and COMPLETELY privatized. Working in conjunction with Amazon in my opinion is a step in the right direction, at least to becoming profitable again. Maybe they can catch up with that 46 billion dollar liability to fund retirement for people who will not even be born for another 15 years so the Federal Government can find another way to gut them. 
 
The Post Office worked just fine until Congress got their greedy hands in the mix.

The only thing that I would add is that privitizing the USPS will be a logistics nightmare. Remember that the postal service is required to deliver to every address in America. The USPS still uses pack mules, boats and planes to deliver mail/packages to its customers. What company is prepared to step up and undertake such a massive operation?

[Guest TankerHC]

The only thing that I would add is that privitizing the USPS will be a logistics nightmare. Remember that the postal service is required to deliver to every address in America. The USPS still uses pack mules, boats and planes to deliver mail/packages to its customers. What company is prepared to step up and undertake such a massive operation?

 

UPS, FEDEX and YRC and DHL.

 

WHo has the cash? Amazon

 

That pack mule comment was pretty humrous BTW. 

[Links2k]

UPS, FEDEX and YRC and DHL.
 
WHo has the cash? Amazon
 
That pack mule comment was pretty humrous BTW.

I can't see it. Most of those companies named already use USPS for last mile delivery to keep their own cost down. It may work if they stopped delivering to homes and set up mail centers where customers were required to pick up their mail, but otherwise I can't see it working.

[MacGyver]

The heart of the matter is that we have this weird paradox with the USPS.  We force unrealistic expectations on them that no truly private company could ever make a business case for, and yet act surprised when they fail to turn a profit.

 

I'm actually pretty supportive of the Amazon move - it allows them to service a paying customer in markets where it makes financial sense. 

 

It's going to come apart, though when 'inequality' gets thrown into the mix and a few people start complaining about their 'rights' being trampled on because they can't get their playstation games way out in the sticks on Sunday.

[101]

They are also in the works for same day delivery in major metropolitan areas. Order before 1400 and get the package by 2000.

[Oh Shoot]

...That pack mule comment was pretty humrous BTW. 

 

True, though. Peach Springs, AZ uses them to get mail to bottom of Grand Canyon where there are 450 residents.

 

Mail gets to Leconte Lodge in Smokies via llama, though they ain't USPS llamas. :)

 

- OS

Edited November 18, 2013 by Oh Shoot

[Guest TankerHC]

I can't see it. Most of those companies named already use USPS for last mile delivery to keep their own cost down. It may work if they stopped delivering to homes and set up mail centers where customers were required to pick up their mail, but otherwise I can't see it working.

 

 

They do use it to keep shipping costs down, which is actually up to the consumer. The costs associated taking over the USPS would be nil, since they are not receiving one dime of the profit the PO makes. They make nothing on stamps, packing, delivery and everything else the PO does. The PO made 5 Billion in profits last year, after paying unfunded liabilities they came out 500 million down. Unless the Congress decided to change the law, those unfunded liabilities could be paid if one of the big companies took over, and those liabilities could be negated by better management and lowering the number of years out that retirement funds have to be funded. There are numerous cities in the same situation as the USPS right now, they really have no way out except one, they will have to stop funding retirement plans that people pay into. And some of them are doing it. The PO cannot stop, because of Congressional rules and regulations, which will eventually end the same way as it is ending in the Cities. Only difference is, they will have to be bailed out by the taxpayer, because when there is no money it can only be taken by one means, tax the citizenry even more. 

[Guest TankerHC]

True, though. Peach Springs, AZ uses them to get mail to bottom of Grand Canyon where there are 450 residents.

 

Mail gets to Leconte Lodge in Smokies via llama, though they ain't USPS llamas. :)

 

- OS

 

Didnt know that, i took a pack mule into the Grand Canyon back in 87. Funny thing, my in laws flew over from Germany. Father in law had a pamphlet from their German travel agent, the front of the pamphlet had a guy, standing next to a car, on a paved road, skirting the Colorado River waving up. When I saw it I told him "I dont think there are any highways in the Grand Canyon". When we got there, the Ranger told him. There are no roads in the Grand Canyon, and there are no businesses in the Grand Canyon. Had to tale a burro actually, not a mule, but talk about someone po'd. 

[tnguy]

One other thing is that certain aspects of the post office's business are given monopoly protection by the government. I won't make direct comment on that as there are two sides to that discussion, just means it's even more of a mess.

[Guest PapaB]

What I don't understand is, how can the USPS make a profit by having workers add a 7th day to the work week? I could understand Amazon making a deal to keep them from cancelling deliveries on Saturdays but I don't get adding Sundays.

 

As far as privatizing goes, wouldn't that require a change to the Constitution?

Article. I. Section. 8.

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

...

To establish Post Offices and post Roads;

[tnguy]

They have the power to establish post offices but perhaps not the requirement.

 

I know Amazon has been making sounds about going to same-day delivery. I don't know if that could relate to it, seems unlikely but maybe. I would think they'd be using their own service in that case.

Edited November 19, 2013 by tnguy

[Guest TankerHC]

What I don't understand is, how can the USPS make a profit by having workers add a 7th day to the work week? I could understand Amazon making a deal to keep them from cancelling deliveries on Saturdays but I don't get adding Sundays.

 

As far as privatizing goes, wouldn't that require a change to the Constitution?

Article. I. Section. 8.

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

...

To establish Post Offices and post Roads;

 

To establish, not run. The reason they made the changes in 71.