Quote:
Originally Posted by CU Tiger
False dichotomy?
Let me put it this way.
I can install a light bulb in my home for free ninety nine.
If I hire an electrician to do a house call the going rate is $60 trip charge.
If someone does it for $20 they are 1/3rd the going rate yet still more expensive than doing it myself.
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… So why would you ever use the $20 electrician? In order for this analogy to work, you'd have to spend at least $1000 to figure out how to do the work yourself.
It seems to me that Amazon is judging it more cost effective to spend millions upon millions developing their own courier service, including the logistics involved in that (think about it - even Walmart isn't spending the insane amounts of money on this). Meaning that it appears to me that the USPS sweetheart deal isn't all that amazing after all. It appears it may even be a fairly negotiated rate which would lead to profits.
(FWIW, the USPS profits from its deal with Amazon - it's one of the most profitable sectors they have; package delivery in general is its most profitable)