![]() While the USPS remains relevant, its numbers and influence have been declining for years. Obviously, this makes ’s future path highly uncertain and the business in five years will probably look very different from the one today.Īlthough risky, the decision to cut the relationship with the USPS also holds interesting opportunities for. On the other hand, its whole business model has been completely turned upside down by the cancellation of the NSA with the USPS and the renegotiation of the NSAs between the USPS and its resellers. The company is an important player in a vast global market that can be expected to remain relevant for the foreseeable future. On the one hand, its historical performance has been breathtaking and has included very high growth rates in revenue, earnings, free cash flow, and book value. On the positive side, ’s debt level seems sustainable and does not yet raise a red flag. If this huge amount of goodwill has to be written down in the future, earnings can easily become negative. As a result, the company has currently $385 million goodwill on its balance sheet, which is more than half of its market capitalization. com’s impressive growth was at least partly realized by multiple acquisitions. This makes very dependent on Amazon, which is especially risky since Amazon explores several ways to deliver its goods itself – thus no longer relying on ’s services. The deliveries of Amazon’s postage accounted for a whopping 88% of ’s revenue. Amazon’s aggressive expansion into the shipping market.This might also threaten the indirect relationship of with the USPS using these intermediate companies. ![]() In May 2019, the USPS announced its intention to renegotiate its existing NSAs with its resellers.
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