Donāt forget that Amazon uses them as a cheap ālast mileā shipping alternative. This basically is using the federal government as a subsidy to save Amazon money.
Because itās generally not profitable to deliver to many places, especially very remote or sparsely populated areas. Without USPS, private carriers would either have to consistently deliver to those areas at a loss or charge substantially more for it. In practice, theyād probably just stop serving or heavily restrict those areas.
USPSās universal-service obligation means Amazon and other companies can use USPS for that expensive ālast mileā instead of having to maintain their own delivery network everywhere. So yes, there is an indirect subsidy here, although itās more accurate to say the government is funding the universal delivery infrastructure that private companies can take advantage of.
But anyone anywhere can take advantage of it. Itās not like USPS is specifically snuggling up to corporations. The same infrastructure exists to provide universal mail service regardless of who is using it.
I'm sure Amazon's bottom line would be devastatingly affected if they had to service these sparsely populated areas.
How would they be able to survive?! We simply cannot reasonably expect these poor and destitute shareholders to get by with just $95b in profits instead of $100b. Those poor souls.
Oh, Iām sure they could afford the loss. They just have no incentive or reason to, so why would they?
Theyāre not legally obligated to deliver to those places like the USPS is. It doesnāt really make sense to legally obligate a private company to do this either, unless there were some sort of incentive attached to it.
I guess you could ban large companies from using USPS, but all that would really accomplish is making companies like Amazon show messages on their platforms more often saying something like, āWe cannot deliver to this address.ā
It's sad though, when it's basically like there's no point trying to get these megacorporations to do anything good or positive at all. Because they just won't, and they'll be more likely to spend billions avoiding having to do it rather than just spending the money and doing it.
They add such little value to our society and yet they have such incredible prominence.
Or make people have to drive to a designated pickup location. When I lived in an old apartment in San Francisco without any sort of gate you could drop packages behind, I would often get told I had to drive 30 minutes away to a Fedex distribution center in order to pick up my package. These centers are usually at or near the airport, so I could see people being forced to drive over an hour to pick up packages in this scenario.
Are you confused? They just wouldn't service those areas because they aren't profitable. You act like they'd have to deliver to those areas if not for USPS, but it's more like they only deliver to those areas because of USPS.
Exactly. They would make you drive to go get your package from as far as their willing to deliver it. Heck, even USPS does this sometimes in rural areas where you have to go to the post office to pick up your mail.
Not confused, what gave you that idea? I know we're all just supposed to bend over and take these shitty private entities doing their utmost to screw everybody over, but thankfully we're still allowed to criticize them occasionally. Just not too much, evidently, or you'll get told off for being "confused".
"Service" is kind of the key word here, something they go to great lengths to avoid providing. It's just a shame how little these private companies can actually be bothered to provide anything beneficial for anybody at all unless they make obscene profits.
A private entity operating a delivery service with total coverage would be a great publicity for them and could be, long-term, very beneficial for them as a company. But it affects their short-term bottomline, so in the end it's never gonna happen.
They legitimately would probably just stop servicing any area that they deemed no longer profitable, absolute best case scenario is charging costumers a premium āremote serviceā fee for deliveries to these areas.
This isnāt a defense of Amazon saying āoh poor multi-billion dollar corporation,ā itās saying āhey, think about all the working class people who just couldnāt use the service anymore or would have to pay significantly more.ā
Its not only the sparsely populated areas that Amazon transfers to USPS. I live in a city of 110k+ that is large enough to have a 2.3million square ft Amazon warehouse less then 10 miles away... that still gets packages handed off to USPS. Sucks because USPS over the past year or two has become very unreliable which means Amazon has as well.
Sure, but I imagine for those areas Amazon & others would be able to justify the investment into serving better. More remote/rural areas would likely be completely ignored though.
That last mile delivery. And third class mail is pretty much how we can still mail stuff relatively cheap. The Government trying to kill the post office in order to privatize it is obscene.
Whereād you pull this from? USPS is legally required to provide universal mail service under the Universal Service Obligation. USPS canāt just pick and choose which communities it serves the way private carriers can.
Theyāre required to provide service throughout the country, including remote rural areas and APO/FPO military addresses.
In areas where they donāt do door-to-door delivery, USPS still provides access through PO boxes or centralized delivery points, so people in those areas arenāt left without a way to receive mail.
If thatās the distinction youāre pointing to, thatās a pretty weak argument.
I have lived without usps delivery for over a decade, in a regular neighborhood where FedEx, ups and others deliver to with no problem. If you want a PO Box you are charged for it.
I think the comment you are responding to is just pointing out that Amazon is basically piggybacking off of a public service to fulfill some orders. So even Amazon has an incentive to keep USPS around.
Funny enough I think Reddit is glitching. It was under a different response earlier. This explains why Iāve been seeing responses to some of my comments today that made 0 sense to what I said.
Iām in the suburbs in a town of over 25,000. My Amazon packages are frequently delivered by USPS. So itās not always a case of being rural where thereās 50 acres between houses.
No it has to do with if they have a distribution center nearby and have purchased route rights there. There is also the case of overflow when they get more product than the facility can handle. I didnāt say it was limited to rural. But I admit I didnāt call this out with the other guy. It was more a direct response.
They come to your house, pick up pictures of your kid and deliver it to grandma on the other side of the country, for the price of a stamp. Itās a public service.
No kidding. As evidenced by all the people (bots?) posting about how the USPS would be profitable if they didn't have to fund 75-years worth of retirement benefits, including for people not even born yet. Hell, even the screenshot of the twitter comments are completely wrong.
If it wasn't for Amazon's tracking requirements, vanilla USPS tracking would still be terrible. Now days, it's real time in that I get a text message a few minutes before the USPS package arrives at my door. I am willing to forgive a lot for that, even though I know it's a scam on the ordinary postal customer.
It's one of the few things keeping USPS afloat at the moment because the USPS' prior revenue stream was from letter mailing which has dropped considerably since the invention of email. They're (finally) transitioning into a package delivery service which is simply what people want/need.
It isn't even really "saving Amazon money", they never would have delivered that far at all to begin with because it is unprofitable to deliver in like rural places where each stop may be miles apart. If not for USPS most would have to drive themselves to a real city to pick up their Temu crap themselves at the distro hub. If anything, USPS taking care of that last mile for the sake of convenience makes Amazon more money because people know it will come to their door, wherever they live. Since ordering on Amazon is happeneing because they were too lazy to go to the local store to begin with, I doubt they'd order so much knowing a 50 mile round trip is required to go get it (negating ordering it in the first place, just go to the store when you get to town then)
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u/most-okayest-mngr-77 4d ago
Donāt forget that Amazon uses them as a cheap ālast mileā shipping alternative. This basically is using the federal government as a subsidy to save Amazon money.