Tuesday, 18 November 2014

Weekly NDM

Royal Mail says Amazon delivery service will hit its UK parcels business


This article is about how Amazons new parcel delivery service will have a dramatic effect on the Royal Mails parcel service as Amazon are charging less and they also provide an option to their customers for same day delivery free for their Amazon Prime customers.

  • Shares in Royal Mail, privatised last October, dropped 8.4% to 430p after the company said losing the business from delivering many of Amazon’s 70m packages a year would cut its potential parcel growth in half.
  • Amazon is Royal Mail’s biggest customer, accounting for 6% of all parcels. Royal Mail said its parcel growth rate would decline from 4%-5% to 1%-2% for at least two years because of Amazon’s decision.
This article is interesting as it shows how online media institutions are expanding, and due to this, they are affecting traditional organisations such as the royal mail.

No comments:

Post a Comment