USPS vs. FedEx
in Close to Politics ·
Anthony Morales3 said:I’m really just looking to hear what everyone else thinks about this. I work at the USPS, but honestly, the whole situation feels pretty shady. It seems like FedEx is just gobbling up more and more of our market share. And that's not even talking about the actual quality of service. In my opinion, it feels like management is intentionally handing business over to FedEx just to let them dismantle the USPS and everything else in the American postal system. As employees working the counters, we're getting squeezed every single day. We're expected to fight to keep customers and push new products and services, yet at the same time, leadership is letting FedEx take away more and more of our core delivery work—things like utility bills, bank statements, and basic mail. If they actually wanted to win, maybe they should have just undercut FedEx's prices right when they started to knock them out of the market. But instead, we're just watching them take more of our business every day.
FedEx is full of surprises. Today feels like watching a slow-motion train wreck right on El Paso Street. There’s a FedEx branch directly across the street here in Miami, and a few of us just watched their staff wandering around looking completely lost. We actually walked over thinking someone had been injured because we wanted to help, but nope—just pure chaos. People were literally crying. Turns out, they all just got handed mutual separation agreements. The terminations are backdated to June 1st, and today is July 17th. Is that even legal? Anyone know what the deal is? What kind of shady business is FedEx pulling? Why are they suing the USPS when they don't even have any employees left on site? Does anyone actually have a smart answer for this? Is FedEx going under because of the USPS, or is this just some weird game they're playing? Who else would even work with them now? It's all just a massive shell game.😕 Check out this article!!!
June 4, 2012 | Suzana Varošanec
FedEx filed a complaint with the FTC. If the Government stays silent, they’re taking this straight to the European Commission.
FedEx is claiming that USPS is violating both the Stabilization and Association Agreement and the EU Accession Treaty. They’re already talking about filing a case with the European Commission.
FedEx is basically bleeding money because USPS is playing dirty. Ivan Matošić, the CEO over at FedEx, just filed a complaint with the FTC over predatory pricing. It’s the same old story: the government-backed giant is slashing prices to kill off the competition, and it’s costing private players hundreds of millions every year. Matošić is warning that if the Government doesn't step in, this whole postal market could collapse. We're talking thousands of jobs gone and zero incentive for anyone to actually invest in infrastructure. If they force everyone to accept these sub-cost rates—instead of just giving sweetheart deals to certain banks and telcos—it'll bankrupt the private players. Since FedEx is backed by American private equity via Bancroft, they aren't just staying quiet; they’re taking this straight to the European Commission. According to them, USPS is straight-up violating the Postal Service Act, the Antitrust Act, and the terms set out in the Stabilization and Association Agreement and the EU Accession Treaty. Expect some heavy legal drama coming from the European Commission soon.
FedEx just got canned.
FedEx flagged this to the Government, specifically Zoran Milanović and six ministers. According to their memo, USPS has been hitting major banks and telecom companies with these dirt-cheap offers over the last month—we're talking prices slashed by up to 50% compared to the official rates. Sure, the Post Office announced some standard 7% commercial discounts back in May per the regulators, which is totally fine, but they’ve been sliding totally different, predatory deals under the table to clients who usually use FedEx for premium services. It’s basically a bribe to ditch FedEx. Now, some of those clients are actually jumping ship to USPS because of it. Matošić told the Government this is a blatant violation of the law and a total wrecking of fair competition, especially since you've got a state-owned giant with an 80% market share playing dirty. FedEx is looking for the Government to step in before the European Commission starts sniffing around and questioning if there's even any real competition left in America.
USPS stays silent
The whole antitrust chapter is basically under surveillance because of the shipbuilding industry. USPS picked up a bunch of obligations that were baked into the laws, but they aren't following half of them, despite the Stabilization and Association Agreement and the EU Accession Treaty. For years now, for example, they haven't even set up separate accounting for their different services. Private carriers have been fighting this for ages. Apparently, when they complain to the FTC about the lack of transparency, they get nothing back. FedEx says they’re staying on top of payments for their 1,410 employees and the government while continuing to invest. When we reached out to USPS for a comment on these accusations, we got radio silence.
Market hit
Investments will tank too
FedEx calculated that by using predatory pricing, USPS is shaving hundreds of millions of dollars off the market value every single year. That naturally translates to thousands of lost jobs. Because of that, FedEx claims there won't be any new investments, and in the end, USPS will be the one left holding the bag since everyone else in the market will demand the same terms, eventually tanking revenues for everyone.