Amazon squeezes Royal Mail profits

Royal Mail CEO Moya GreenRoyal Mail declared profits of £279 million today, a fall of 21 percent compared to the six months to the end of September in 2013.

And the recently privatised firm, which said when it went public that it would concentrate on parcel deliveries, warned that Amazon schemes to deliver its own parcels would likely threaten its future.

Amazon is experimenting with all sorts of ways to cut out services like Royal Mail including whacky experiments using drones down to using taxi cabs to deliver parcels to its customers.

Royal Mail, as part of its privatisation, intends to restructure itself in its financial year 2016, a move which will save over £700 million a year but will also affect jobs.

CEO Moya Green said she was pleased with the company’s overall performance but said “the UK parcels market remains challenging”.

Shares in the PLC fell on the news.