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Business & education services

Post Office adds Amazon to parcel network after Royal Mail monopoly ends

The service will be launched nationwide in 2022, following a six-month trial

The Post Office has agreed a new contract to handle packages for Amazon.com, Inc. (NASDAQ:AMZN) as the UK state-supported network begins a new era freed from its tie to Royal Mail PLC (LSE:RMG).

Last month, the Post Office signed up its first new relationship - with French-owned DPD - after freeing itself from its long-time agreement with the Royal Mail in December.

The new contract with Amazon is similar to that with DPD, focused on click-and-collect orders to allow customers of the US internet colossus to pick up and drop off packages.

The service will be launched nationwide in 2022, following six months of trials.

“The world’s leading ecommerce company appreciates the value of working with the Post Office and the high level of customer service you provide day-in and day-out,” said Post Office chief executive Nick Read.

“It is helping us develop a proposition that is effective and efficient for our customers and our postmasters.”

The Post Office clarified that it continues to work with Royal Mail and that these new contracts complement the existing long-term partnership with the former monopoly.

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