Thanks to President Donald Trump, the investment community is now taking a closer look at Amazon's (AMZN) relationship with the United States Postal Service. In a series of Twitter messages, Trump has accused Amazon of draining the Postal Service of money it can't afford to lose.
Amazon's founder, Jeff Bezos, also owns The Washington Post, which has aggressively covered the Trump administration.
The task force will be assigned to study such factors as pricing in the package delivery market.
From there, Trump assigns a new task force to dig into the U.S.P.S. and do their thing within 120 days.
"The USPS is on an unsustainable financial path and must be restructured to prevent a taxpayer-funded bailout", the president said in an order that was released on Thursday night. Amazon is primarily using the Postal Service and its letter carriers for the "Last Mile" delivery of packages to an estimated 150 million homes and businesses, including on Sundays.
While the terms of the contract remain confidential, the Postal Service has indicated that the pact with Amazon is profitable and points out that it's legally prohibited from delivering packages at rates below its delivery costs.
Fox News politics editor Chris Stirewalt on President Trump's attacks against Amazon and what the president's motives for attacking the e-commerce giant may be. But package delivery is actually a rare growth area for the service.
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Ferrer also agreed to cooperate in the ongoing California prosecution against the founders who have not pleaded guilty. Ferrer was taken into custody following a joint investigation by the Texas and California attorneys general.
The Postal Service says the law requires that such negotiated contracts must cover the Postal Service's costs and that postal regulators have studied the contract and approved it.
Whether or not Amazon spurred the government audit, Schulman says its analysis of the Postal Service should be conducted as a part of routine business.
Representatives from the Treasury Department, Federal Financing Bank, Office of Management and Budget, and Office of Personnel Management will sit on the task force.
It said losses by the Postal Service since the 2008 recession had amounted to $65 billion.
"As we have repeatedly stressed, these business model problems are serious, but solvable, and the President's executive order. provides an opportunity to further consider these important public policy issues", the statement said. Package volumes grew by 11.4 percent last year, according to USPS and documents show that package revenue contributed a net total of more than $7.1 billion to the agency's bottom line during fiscal year 2017.
Still, the demand hasn't been enough to offset its growing costs.
The main drag on USPS finances, in reality, has been the mandate that it pre-fund its retiree health care obligations to the tune of more than $38 billion.