Yesterday Donald Trump continued his error filled tirades against Amazon and the US Postal Service, this time citing a report he claimed (falsely) had “just come out” and supported his charge that the USPS is subsidizing Amazon. Other analysts have pointed to serious flaws in the report, but now even the report’s author says it doesn’t prove what Trump claims it does:
From Business Insider:
He seems to be referring to a 2017 Citi Research report that has frequently been cited by people criticizing Amazon’s use of the USPS.
However, according to the author of the report, Trump has the wrong interpretation. “We never said Amazon is getting a $1.50 subsidy,” Citi analyst Christian Wetherbee told Business Insider on Monday in a discussion of misinterpretations of the report, which actually says the loss per package is roughly $1.46 for the USPS.
Wetherbee continued: “If you read what that number is, it’s the total package business is priced below cost. It has nothing to do with Amazon specifically.”