The Channel logo

News

By | John Oates 20th June 2007 09:05

Post Office loses Amazon contract

Last cheque's in the post

The Post Office has lost its £8m contract for Amazon.co.uk's second class deliveries.

The key contract will be a big loss for the Royal Mail.

In a statement, Royal Mail said: "We're very proud to work with Amazon and the loss of such a significant piece of their business demonstrates very clearly that Royal Mail's higher costs, directly caused by our failure to fully modernise our operations, are costing us business. It's vital that we urgently change and modernise if we are to be able to compete against more efficient rivals who have already done so.

"At the same time our customers are being threatened with disruption because of strikes - strikes which are aimed at preventing exactly the modernisation that could keep our big customers on board.

"Customers like Amazon are critical to us, and to our competitors. They represent an important area of growth in a market which is otherwise declining as fewer items of mail are sent."

The Royal Mail is still in talks with the Communications Workers Union to avert a strike.

Amazon.co.uk refused to comment on this story because it does not discuss relationships with suppliers.

Full statement here. ®

comment icon Read 43 comments on this article alert Send corrections

Opinion

Alexandre Mesguich

Change is order of day as tech giants shift strategy gears
Partnership

Frank Jennings

Confused? No problem, we have 5, no 6, no 7... lots of standards

Chris Mellor

VC sequence could end not with a bang, but a whimper
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

Features

money trap conceptual illustration
Big boys snare the unwary with too-good-to-be-true deals
Angus Highland cow
Pet carriers not wanted for whitebox stampede
FBcoldstoragearray
Sorry OpenStack and Open Compute, we're not all Facebook
Gary Kovacs, CEO of AVG. Pic: World Economic Forum
Scammy download sites? Government snooping? Run of the mill for Gary Kovacs