Shares of Stamps.com plunged more than -50% Friday, following news of its severing ties with the U.S. Postal Service (USPS).
On Thursday after the stock market closed, Stamps.com's chairman and CEO Kenneth Thomas McBride told analysts that the online shipping and mailing company no longer wished to maintain an exclusivity with the USPS alone, and instead was looking to forge collaborations with other carriers like FedEx and United Parcel Service too. USPS did not agree to the proposal, and this apparently led to Stamps.com deciding to end its partnership with the former. McBride is apparently also keen on leveraging Amazon’s foray into the shipping space.
McBride mentioned that the company finds it unviable to continue being exclusive with just the Postal Service, since “customers can no longer survive on just the USPS” according to McBride. He has also indicated that Amazon is fast emerging as a potent force in the shipping sector especially with the latter’s fast delivery services, and hinted that working with Amazon is the smart thing to do.