Should Amazon buy the Royal Mail?

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Amazon MailOver on the Software Advice blog they’ve done an interesting analysis of the companies purchased by Amazon and speculated on who Amazon might acquire next.

Software Advice say “Today, Amazon is sitting on almost $8 billion in cash and short-term investments and its stock is near an all-time high. This gives Amazon currency with which to grow by acquisition or investment. The question is, who might they acquire next?”

They have a ton of interesting suggestions ranging from companies with real estate where lockers could be placed through to media or grocery companies.

We have a more interesting suggestion however – what about Royal Mail.

Amazon is when all things are said and done a fulfilment house. Third party fulfilment is growing and Amazon are without question the masters of shipping their own goods. With FBA warehouses across the country, owning their own delivery company would mean Amazon could control the delivery experience right up to the door step.

Amazon could then install a locker in every Royal Mail Delivery Office in the country extending self service opening hours to 24 hours a day. Post Office lockers are already commonplace in the US and many other counties around the world so why not also the UK?

Not only would owning Royal Mail give Amazon unparalleled control of deliveries, they could probably also save money. Rather than paying for deliveries Amazon could use Royal Mail’s other parcels and letters business to subsidise Amazon shipments.

Against Amazon buying Royal Mail is obviously the price (although they would only need a controlling stake, not the entire company), Amazon’s workplace practices – they’d hate dealing with the CWU, and the sheer amount of work it would take to finish the Royal Mail modernisation program.

Would you like to see Amazon delivering your mail? The one thing for sure is that they’d bring their ultra efficient processes to the postal service. Amazon might be a very remote outsider to run Royal Mail, but I think they’d get my vote if our Government gave us a say in should we sell off our National treasure.

Software Advice Infographic: History of Acquisitions by Amazon.com

Software Advice Infographic History of Acquisitions by Amazon

6 Responses

  1. WOW what a thought…Amazon owning and controlling the post office prices and delivery locations, that would shake up the deliveries for every other business.

    Lets hope not eh!

  2. The privatised Royal Mail will have a large number of conditions imposed on it to ensure that it is fair to customers (continues to provide a universal service etc.).

    Amazon would have to show that they are not prioritising, or cross-subsidising, their own deliveries in order to reduce competition from other retailers.

    I suspect we will end up with a situation similar to the one BT is in with numerous quasi-independent subdivisions which have to buy services from each other.

  3. Royal mail will be putting amazon and ebay out of business, when they open their online market place, with very heavily discounted postage charges

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