UPS could improve its delivery services if the United States Postal Service began selling rights to access mailboxes as recommended by the Trump administration, Chairman along with CEO David Abney told CNBC on Wednesday.
“We look at which as a very positive step, along with we think the idea helps the consumer, because no one wants to get a delivery notice at their door saying they didn’t get a package,” he said on “Squawk Alley.” “If [we] get mailbox access, [we] can just provide much better service.”
Earlier This kind of month, the Treasury Department proposed which the federal postal service license mailbox access to private entities. The proposal was part of a task force, formed after an executive order by President Donald Trump, which looked into the operations along with finances of the cash-strapped agency.
Congress enacted a mailbox restriction for USPS within the 1930s, a mailbox monopoly the task force said will be “highly valuable” along with could create a different revenue stream.
“We have a great relationship with our customers,” Abney said. “We go to most everyone’s houses, however getting access to the mailbox would likely be an even closer connection.”
Last week, the transports sector had its worst days of trading in more than 7 years, along with UPS has tumbled about 11 percent by a December high to find itself in correction territory.
Morgan Stanley recently lowered its cost target for UPS by $92 to $87. The stock was trading at about $102 as of Wednesday afternoon.