I was looking at this area of ‘delivery’ and ‘post’ and ‘packaging’ as something upcoming.
More people will order things online (a la Amazon) more people will demand on time home delivery… you guys get the idea … so my idea was if Amazon and co grows and the way we consume goods changes this might have a positive impact on those who deliver those packages.
I also like to play devil’s advocate with my own thinking:
Amazon is pushing hard on taking over the delivery side of things in the US — Can I see Amazon having their own distribution system — YES absolutely.
I hope my thinking makes sense here – happy to hear feedback/criticism
I honestly thought that the trust people now have shopping online would save the Royal Mail - it appears that’s not the case. They have the largest delivery network in the UK but the future isn’t looking bright, hence the current share price.
Amazon Post. No stamps needed, all next day.
Write the location or pick from map, write a one off code generated in the app on the item. Take your letters/parcels to nearest Amazon Locker location. Larger items picked up directly from your home. Debits your account. Done.
Could even use what 3 words to modernise delivery location.
Great observation. I mean the Post Office has warehousing, distribution lines and mechanisms, etc. Amazon or Alibaba might by them for the infrastructure and plug-in some much needed AI to modernise the processing.
The Royal Mail are relatively expensive when it comes to parcels or larger items of post. They are starting to support letter box parcel drops in some larger cities. They are starting to edge into this market more, such as having an app which will notify you when there’s items due for you, also more tracking options - though can’t buy them via the post office to reduce costs.
The yield is so high because the price crashed. Royal Mail Group has increased their dividend every year for the past five years, the total dividend for the last year was around 24p per share. They might cut this, I think since then we’ve had GDPR which is supposed to have had a major impact ( less junk mail, has to be positive for the general public ), also people are moving away from letters and towards parcels.
The thing is Royal Mail treats their staff well ( this is a good thing ) so they have higher expenses, which makes them more expensive. On the other hand consumers want the cheapest delivery possible, as do most online retailers.
Which means Royal Mail needs to figure out how to future proof their business. I know they announced parcel post boxes but that doesn’t really feel all that special. Previously Royal Mail has announced they want to use drones and autonomous trucks but there hasn’t been anything recently.