Amazon is launching a new courier service in the UK, “Shipping with Amazon”, where it will collect parcels from online retailers and deliver them next day to the customer. With this new ini"a"ve, Amazon e#ec"vely becomes a shipping and logis"cs provider for retailers, compe"ng directly with third-party shipping companies. Using relevant economic concepts and theories, provide the ra"onale behind this decision. Discuss how you an"cipate this move may a#ect the overall market of postal service in the UK, both in the short-run and in the long-run.
• Avoid to write a “report” with li*le or no economic content
• Try to embed relevant economic concepts and theories to support your analysis
• Use relevant diagrams when necessary/appropriate to illustrate and
further support your argument