Royal Mail loses Amazon contract, couriers to benefit
Date: 26 July 2007
Under increasing pressure from rival courier and delivery companies, Royal Mail has lost yet another high-profile contract in the form of online retailer Amazon.
The £8 million annual contract to deliver second class post for Amazon, which sells CDs, DVDs and other items, has been terminated. However, Royal Mail will continue to deliver Amazon's first class mail, the Times reports.
The news comes at a time when the Royal Mail postmen belonging to the Communication Workers Union (CWU) are beginning a series of strikes that will disrupt postal service for two weeks, until August 8th.
Different sectors of Royal Mail are striking on different days, meaning that disruption will be continuous throughout the period. The industrial action relates to pay and job losses as the firm struggles to modernise.
While Royal Mail suffers, other courier companies are reaping benefits from dissatisfied Royal Mail customers. Citipost has picked up new customers such as the Economist magazine and DX claims it is set to make more than £10 million this year from the strikes.
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