New Postal Service head is a top Trump donor. What does that mean for its future?
“The Schumer quest strikes me as largely if not wholly political. This isn’t a guy who has no experience whatsoever,” said Kevin Kosar, an executive at the R Street Institute, a think tank, who spent more than 10 years covering postal issues for the Congressional Research Service.
“There’s nothing that can be done to remove him from his position without Congress doing something radical,” Kosar said.
DeJoy was a businessman in North Carolina before taking on his new role. He spent more than 35 years growing and managing New Breed Logistics and, while serving as CEO and chairman of the company, provided logistics for the USPS. He retired from the company in December 2015.
He’s the first postmaster general in many years to have been appointed from outside the USPS, Kosar said.
“I think it’s a big moment for the Postal Service,” he said. “With it struggling to adapt to the 21st century and digital age, there are a lot of us who are hopeful that someone with outside logistical experience will help it navigate this new world.”
One of the challenges DeJoy faces is pricing on parcel deliveries, which is a competitive space with lots of private players. About one-third of USPS’ revenue comes from parcel delivery.
Trump has railed against the USPS’ low pricing and has been particularly critical of its relationship with Amazon. Trump has been outspoken about his dislike for Amazon founder and CEO Jeff Bezos, and he accused the USPS of being Amazon’s “delivery boy.”
While Kosar said DeJoy will likely try to raise prices, he said there’s a narrow margin to do that and stay competitive.
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“This fall is going to be telling for DeJoy,” Kosar said.
Image credit: jessicakirsh
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