Amazon Ends Delivery Experiment Amid UK Investigation

Amazon ( (AMZN) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Amazon has decided to end its two-year delivery experiment involving contract delivery firms using small cars for short shifts in various U.S. states. This move allows gig economy workers, known as Flex drivers, to resume their roles in delivering packages using their own vehicles. The decision follows feedback from customers and delivery partners, indicating that the experiment was not suitable for Amazon’s same-day delivery model. Despite this change, Amazon remains committed to enhancing its delivery network and has announced plans to invest up to $4 billion to expand its rural delivery network by 2026.

In other news, Amazon is under investigation by the UK’s Groceries Code Adjudicator for allegedly failing to pay its suppliers on time, a violation of the Groceries Supply Code of Practice. This investigation could lead to a fine of up to 1% of Amazon’s annual grocery turnover in the UK if the company is found guilty. Despite these challenges, Amazon’s stock is still regarded favorably by analysts, with a Strong Buy consensus and a price target suggesting a potential upside of around 15%.