XPO Logistics, the company Postmaster General Louis DeJoy has long ties to, has seen a 200% increase in profits from USPS since he took over in June.
In the ten weeks since DeJoy became the USPS postmaster general, XPO has received about $14 million from its work with the postal service. In the same time period, the company earned only $4.7 million in 2018 and $3.4 million in 2019 from USPS.
XPO Logistics “assists the Postal Service during busy shipping periods, such as around the holidays, moving bulk shipments of packages from fulfillment centers and taking them to local Postal Service centers so mail carriers can deliver them to residences.”
DeJoy sold his company New Breed Logistics to XPO and was the chief executive of XPO’s supply chain business until 2015. He served on the board until 2018. He still has tens of millions invested in the company.
The figures, obtained by The New York Times from a public records request, shed new light on the extent to which the company where Mr. DeJoy was a top executive — and in which he still has a substantial amount of money invested — is intertwined with the agency he now runs, fueling questions about a potential conflict of interest. They emerged on the same day that the House Oversight Committee issued a promised subpoena for documents that the panel has said Mr. DeJoy is withholding from Congress, including information about his personal financial affairs.
Through about 100 contracts with XPO Logistics and its subsidiaries, the Postal Service has paid the firm $33.7 million to $45.2 million annually since 2014 for services that include managing transportation and providing support during peak times.
The documents also show a surge in revenue for XPO from the Postal Service since Mr. DeJoy took over on June 15. The Postal Service paid XPO Logistics and its subsidiaries about $14 million over the past 10 weeks, compared with $3.4 million during the same time frame in 2019 and $4.7 million in 2018.
The New York Times
Source
https://www.nytimes.com/2020/09/02/us/politics/louis-dejoy-usps-paid.html?searchResultPosition=1
Photo:Elon University
