- 12 January 2016
- Transport / Logistics Services
Online giant Amazon is set to buy up the remaining 75% stake of French delivery company Colis Privé. The deal is set to be completed in the next two months.
Amazon bought a 25% stake in the French delivery company in October. The online giant is well known to be investing heavily in stakes in delivery companies across Europe as it seeks to control the delivery side of its business. Amazon is known to be having issues with US delivery company UPS that has struggled to meet demand during busier periods. This could be a serious threat to the US company, that also delivers Amazon goods to customers in Europe, as UPS revenues from Amazon alone are said to be in the region of USD $1 billion annually.
Amazon bought a 4% stake in UK delivery company Yodel and has been quietly expanding its in-house delivery network in the UK. In France, its likely buy-out of Colis Privé, a national home delivery company, would give it access to a network that covers most of the country. It has reassured other customers of Colis Privé that the delivery company would continue to serve them as well, even while under the control of the Amazon brand.
Industry insiders see that delivery is a major new interest of Amazon but are split in their views of whether the company is set to bring all its delivery business in-house in Europe and the US or how things will pan out overall. Major delivery companies such as Royal Mail will be watching closely as in losing Amazon there could be significant losses incurred. Indeed, on Friday Apex Insight reported a major London stockbroker marking Royal Mail shares as ‘Sell’ in part in recognition of Amazon’s bringing much of its delivery business in-house and due to the national mail operator’s exposure to that single client.