Amazon (AMZN) is facing fresh criticism in the U.K. after lawmakers accused major delivery companies of benefiting from Royal Mail’s nationwide network while avoiding many of the costs tied to serving remote areas. The concerns were raised in a new parliamentary report examining ongoing problems at Royal Mail.
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High conviction AMZN bears now have this Tradr ETFAccording to the report, Amazon often handles its own deliveries in busy cities but relies on Royal Mail for rural deliveries that are harder and more expensive to manage. Critics argue the fees paid to Royal Mail may not fully cover the cost of maintaining its nationwide postal service.
MPs Call for Fairer Competition
Liam Byrne, chairman of the Commons business and trade committee, said large logistics firms are effectively “hiving off” profits while still depending on Royal Mail’s network to reach less profitable regions.
MPs also raised concerns that companies such as Amazon, Evri, Yodel, and DPD may be gaining an advantage through lower-cost gig-economy labor models.
The criticism comes as Royal Mail continues to face pressure over delayed deliveries and weak service standards. Lawmakers said the postal operator delivered an estimated 219 million letters late this year and argued regulators have not done enough to address the issue.
The report also called for stronger oversight of the postal market and possible rule changes aimed at creating fairer competition across the industry.
What Is the Price Target for AMZN Stock?
According to TipRanks, AMZN stock has a Strong Buy consensus rating based on 45 Buys and one Hold assigned in the last three months. At $319.00, the Amazon average share price target implies an upside of 18.83% from the current level.
