The stock price of Stamp.com (NASDAQ:STMP) declined significantly after announcing that it is ending its exclusive partnership with the United States Postal Service (USPS).
STMP shares were trading around $85.42 a piece, down by 56.78 percent around 11:58 a.m. EST on Friday.
During the company’s earnings conference call, Stamp.com CEO Ken McBride said, “One of our nonnegotiable items is that … We will no longer be exclusive to the USPS.
Stamp.com wants to embrace other carriers
USPS rejected “these terms of any other terms of our partnership proposal…Our customers can no longer survive on just the USPS, and we don’t see that as a viable option for the next five years. So basically that was our premise…no matter what, this company can no longer be exclusive given the trends in the shipping market,” he added.
Furthermore, McBride said the company’s decision on the issue is final unless USPS agrees to remove “exclusivity” in the partnership agreement. He explained that Stamp.com needs to “embrace other carriers” and it cannot afford to just remain an exclusive partner with USPS because it’s not the best interest of its customers.”
