Amazon and UPS have been quietly fighting over the post office’s cost structure — long before Trump

[cheryl]

Amazon and UPS have been quietly fighting over the post office’s cost structure — long before Trump - CNBC

• Amazon and UPS have been arguing over the post office's cost structure through public filings with the Postal Regulatory Commission, the federal arm in charge of setting prices for the Postal Service.
• The central issue is the 5.5 percent minimum "institutional" cost contribution requirement from the post office's package business, which competes with UPS and FedEx.
• The issue could give a competitive advantage to either Amazon or its rival package shippers.

 

[Old Man Jingles]

Amazon and UPS have been quietly fighting over the post office’s cost structure — long before Trump - CNBC

• Amazon and UPS have been arguing over the post office's cost structure through public filings with the Postal Regulatory Commission, the federal arm in charge of setting prices for the Postal Service.
• The central issue is the 5.5 percent minimum "institutional" cost contribution requirement from the post office's package business, which competes with UPS and FedEx.
• The issue could give a competitive advantage to either Amazon or its rival package shippers.

The USPS ALLOCATED THIS AT 23% in 2017.
UPS argues it should be 30%.
AMAZON argues it should be 0%.

 

[UpstateNYUPSer(Ret)]

The USPS ALLOCATED THIS AT 23% in 2017.
UPS argues it should be 30%.
AMAZON argues it should be 0%.

Can you clarify for us in layman's terms what a minimal institutional cost contribution requirement is?