WASHINGTON – 8/9/17 – Buffeted by threats from Amazon (AMZN) drones to deliveries by golf cart, the beleaguered U.S. Postal Service is counting on a different strategy to stay competitive: more freedom to raise prices on mailing letters.
After a 10-year review, the Postal Regulatory Commission appears likely to move to grant the Postal Service power to increase stamp costs beyond the rate of inflation, marking the biggest change in its pricing system in nearly a half-century. A decision is expected next month.
The commission, which oversees postal rates, might limit how high stamp prices could go. But the price of a first-class stamp, now 49 cents, could jump, though it’s not known how much.
The plan has received praise from financial analysts but raised the ire of the mail-order industry, which could pay millions more for sending items like prescription drugs and magazines and be forced to pass the costs onto consumers.
The Postal Service is trying to stay financially afloat as it seeks to invest billions in new delivery trucks to get packages more nimbly to American homes.
Read more at CBS News