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Should Amazon buy the Royal Mail?

The latest news and discussion on Royal Mail Shares.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
All news and discussion on Daniel Kretinsky's full takeover of Royal Mail.
TrueBlueTerrier
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Should Amazon buy the Royal Mail?

Post by TrueBlueTerrier »

http://tamebay.com/2013/07/should-amazo ... -mail.html" onclick="window.open(this.href);return false;?

Over 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.
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britwrit
MAIL CENTRES/PROCESSING
Posts: 964
Joined: 22 Apr 2007, 15:12

Re: Should Amazon buy the Royal Mail?

Post by britwrit »

If Amazon bought Royal Mail, they'd finally have to pay something like their full share of tax in the UK. Plus, like any other company who bought Royal Mail outright, they'd be saddled (at least for the medium term) with the USO and DSA and various pension liabilities.

For what they'd save in shipping costs (and the spare change they picked up from the packet business), it wouldn't be worth the hassle. They might be cash-rich but they only just posted their first-ever net profit for a quarter (a whopping $5 million globally.) There are other businesses they can put their money into besides us.
hazzeem025
Posts: 273
Joined: 11 Oct 2009, 18:09
Gender: Male

Re: Should Amazon buy the Royal Mail?

Post by hazzeem025 »

TrueBlueTerrier wrote:http://tamebay.com/2013/07/should-amazo ... -mail.html?

Over 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.
Who writes this shite? Whoever does should go and work for Amazon in one of their 'ultra efficient' warehouses. You know where you have targets you can't meet, where you have to run around with a computer that tracks all your movements while on your shift etc etc.

Then the muppet who writes such utter bollocks might just have a different opinion of Amazon!
redman
Posts: 56
Joined: 12 Sep 2007, 15:35

Re: Should Amazon buy the Royal Mail?

Post by redman »

Jeez, frontline staff moan about conditions now. Amazon would have trackers on every delivery and their sick leave and late attendance conditions are shocking.
Hybrid
Posts: 18
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Re: Should Amazon buy the Royal Mail?

Post by Hybrid »

Amazon=one of the minimum wage pioneers!
UnhappyGremlin
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Re: Should Amazon buy the Royal Mail?

Post by UnhappyGremlin »

Hell no.
Sometimes, I wish I wasn't a Rep.
baldrick
EX ROYAL MAIL
Posts: 5038
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Re: Should Amazon buy the Royal Mail?

Post by baldrick »

The lead item on Channel 4 news tonight was about how badly Amazon treats their employees. Apart from tracking their movements and monitoring their time in the toilet, they only get a 30 minute meal break, but it can take 15 minutes to get from one end of the building to the exit, where they have to be searched, and 10 minutes to get back to their workstation, so they only get 5 minutes to eat. They are taken on 13 week contracts, laid off, then possibly rehired so they never get employment rights or permanent contracts. They can be sent home without pay if there is insufficient work, or told not to come in the next day. If they leave they are usually not paid holiday money that is due.
After 2 years in Rugeley Amazon is finding it difficult to recruit locals as word about the working conditions have got around and they have to bus in temp staff from up to 20 miles away.
Last edited by baldrick on 02 Aug 2013, 09:33, edited 1 time in total.
LinChong
Posts: 229
Joined: 27 Sep 2012, 09:07
Gender: Male

Re: Should Amazon buy the Royal Mail?

Post by LinChong »

From a newspaper article by Jean-Baptiste Malet, a French journalist who worked for Amazon at Montelimar:

"Amazon organise work on a model that is based on the "Stakhanov" model used in the old Soviet Union. It's a type of collectivism where individuals rights and freedoms don't count. Workers have to clap "top performers" and are psychologically conditioned to Amazon ideology. They are under constant supervision and encouraged to grass on workers they think are not productive enough. It's called "reporting an anomaly".

After reading this, I decided never to give money to Amazon again.
frankfurters
Posts: 36
Joined: 21 Jul 2013, 22:29
Gender: Female

Re: Should Amazon buy the Royal Mail?

Post by frankfurters »

baldrick wrote:The lead item on Channel 4 news tonight was about how badly Amazon treats their employees. Apart from tracking their movements and monitoring their time in the toilet, they only get a 30 minute meal break, but it can take 15 minutes to get from one end of the building to the exit, where they have to be searched, and 10 minutes to get back to their workstation, so they only get 5 minutes to eat. They are taken on 13 week contracts, laid off, then possibly rehired so they never get employment rights or permanent contracts. They can be sent home without pay if there is insufficient work, or told not to come in the next day. If they leave they are usually not paid holiday money that is due.
After 2 years in Rugeley Amazon is finding it difficult to recruit locals as word about the working conditions have got around and they have to bus in temp staff from up to 20 miles away.
Took the words right out my mouth! Couldn't believe what I was watching! Hell no to amazon!