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congress should allow USPS to raise rates if need be, but how would amazon force USPS to make special, money-losing trips just for them? most (all?) rural pack
by clairity 6y ago
congress should allow USPS to raise rates if need be, but how would amazon force USPS to make special, money-losing trips just for them?
most (all?) rural packages should go out with the regular (usually daily) mail carrier, so the marginal cost of also delivering amazon packages to rural addresses should basically be zero for USPS.
for the really remote areas, i don't think you can choose any time-bound delivery you want, like next-day or two-day. they would only quote you what they'd be able to manage with the normal, likely less frequent, delivery schedule for the area (like weekly).
so i can see how USPS misses out on lucrative urban deliveries, but not how they lose money on rural deliveries. amazon absolutely does gain by not delivering to rural though.
- zaroth 6y ago> but not how they lose money on rural deliveries It's part of the USPS pricing structure that the dense urban environments subsidize the sparse rural ones. It's not a question of "just one more package" being basically zero cost. In the aggregate there is incremental cost to delivering more packages, and that cost is higher for rural packages than urban packages. Apparently, the rate structure just assumes a certain urban/rural mix without accounting for a trillion dollar company with enough capital to arbitrage the lower urban delivery cost.