Online giant Amazon spells trouble for UK Royal Mail growth


Royal Mail on Wednesday warned  that online giant Amazon’s own delivery service and increased competition from rival couriers has hampered progress and impacted revenues. The former state-owned British company said that Amazon’s plans to launch their own delivery service would cut the growth in the British parcel market for it and its rivals from 4-5 percent down to 1-2 percent.

Amazon is planning to deliver more of its own packages through its own delivery service and as the former state-owned courier’s biggest customer (accounting for six percent of total sales), Amazon will impact on both Royal Mail and its rivals in the near future. Alongside shipping via Royal Mail, the online retailer also delivers via other couriers such as DPD, TNT and Yodel and its decision to bring its deliveries in-house is likely to have a major impact on the parcels market in the UK.

Moya Green, chief executive at Royal Mail, told Reuters:

When an online retailer of the size and scale of Amazon decides to build out its own delivery network, that changes the market for everybody.

Author: Nirave

Hey, I'm Nirave - based out of London, I'm the European Editor for FoneArena. I love travelling and can usually be found reading, playing with the latest tech or writing about travel and tech.
Connect with me on Twitter (@nirave), FaceBook and Google+