|Fri Sept 5 2014 08:19:05|
FedEx and UPS Howl as USPS Lowers Priority Mail Rates
By: Ina Steiner
The Wall Street Journal picked up on our story about UPS and FedEx concerns over the Priority Mail rate changes that take place next week. The USPS is raising rates for Priority Mail when purchased at the Post Office, but is lowering rates for those who purchase Priority Mail postage online (commercial pricing).
As we wrote last month, UPS contends that the Postal Service is trying to squeeze revenue from market dominant mailers while increasing its competitive market share, and both UPS and FedEx question the Postal Service's costs for competitive products that it shared with the Postal Regulatory Commission.
Stamps.com Eric Nash told us that with the September rate changes, "the USPS is going aggressively after the ground business from UPS/FedEx Ground." The rates take effect as of September 7, 2014.
It's no surprise the move is getting major attention from the Wall Street Journal - the newspaper states, "both UPS and FedEx say the agency is taking advantage of its status as a near monopoly to unfairly snag a bigger piece of the e-commerce pie" - definitely worth a read.