Royal Mail: Can posties compete with Amazon's drones?

[TrueBlueTerrier]

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Shares in Royal Mail have dropped to their lowest point since privatisation as the FTSE100 delivery company admits its suffering from "intensifying competition" from the likes of Amazon

Who would you back in the ferocious competition to serve the UK's army of online shoppers? A 500-year-old, partially-state-owned behemoth with a highly unionised workforce and a tough Universal Service Obligation. Or an international electronic commerce powerhouse which, in just 10 years, has become the world’s largest online retailer.

Little wonder that Royal Mail has admitted that it’s losing out to Amazon in the UK parcels market. Shares in the FTSE100 delivery giant have hit their lowest point since the privatisation in October as Royal Mail admitted parcel volumes have been “weaker than expected” in the past quarter, “largely driven by the intensifying competitive environment.” Moya Greene, chief executive, has warned that parcel revenues will be “lower than we had anticipated”. Full year results could also be hit - unless Royal Mail can rise to the challenge of Amazon.

First the problem. Most immediately, Amazon has scrapped free delivery charges on orders below £10 - the net result being a big hit on Royal Mail's delivery bag. But far more dangerous is Amazon's challenge to Royal Mail's core delivery business. Not satisfied with merely out-selling most of the high street and becoming the one-stop-online-shop for millions of Britons, Amazon wants to take its goods to its customers door-steps too.

Like other challengers to Royal Mail's former monopoly, Amazon has launched its own fleet of vans. But Amazon's real threat is its ideas for entirely new delivery methods. In June the company announced that it would be installing collection lockers at UK railway stations and in two London tube stations. The lockers will be added to the shops and retailers that have signed up to be part of Amazon’s Collect+ network where customers can go and fetch their goods themselves.

And then there’s Amazon Prime Air. Many thought the idea of unmanned delivery drones was a joke when it was first mooted by Amazon in 2013. But this week the company has sent a letter to the Federal Aviation Administration (FAA) explaining its plans to launch airborne drones capable of delivering packages to registered customers “in 30 minutes or less.” According to the letter, the drones will be able to travel over 50mph and carry weights of up to 5lbs, which covers 86pc of all Amazon packages.

[hans solo]

can see terrorist cells jumping on this idea
imagine all the little hover drones flying all over the place
special delivery to cwu hq

[wookie]

Can't wait for the first compensation case when one of these 'drones' crashes onto someones head! Disaster waiting to happen.

[eric the viking]

Won't people just be taktng pot shots at them with air rifles?

[Sidley]

Throw a tarp over them when they land and sell them for scrap.

[Lincox]

Just ordered a few bags of ballast and cement, starting the landing strip in the back garden at the week end. Progress must go on.

[raikky]

my air rifle is in standby I have no problem blasting these if they come into my property space

[freelunch]

Drones don't have a hope. They need a very very very big open space if they're to avoid the hazards we face daily.
Dogs, bins blowing about, hanging baskets, wind chimes, ornamental lamp posts, low branches, wires hanging from last year's Christmas lights, and more.....
Amazon gonna need RoboPosties to handle that lot. Drones deliver one parcel then f**k off back to base.

[TrueBlueTerrier]

Of course they are completely safe - what could happen after all

[johno47]

Ide love to see drones in action, sat navs don't always work they can take people to the wrong place but I wonder if these drones will be asking us for directions to?

[Lincox]

Will we be forced to wear cycle helmets again to protect us against a falling drone.

[NWpostie]

Don't worry Skynet™ will be handling all that, apparently the next level in the pipeline is a T2000 machine to deliver a surprise to your door !

[TrueBlueTerrier]

Don't worry Skynet™ will be handling all that, apparently the next level in the pipeline is a T2000 machine to deliver a surprise to your door !

Sarah Connor - Please sign here