Royal Mail blames Amazon postal service for drop in profits

Britain's Royal Mail posted a drop in half-year profits today after its parcels arm was squeezed by Amazon’s drive to deliver more of its own business.

Parcel volumes for the UK service were up 2% in the six months to September 28 but Royal Mail said the division’s revenues fell 1% in a “highly competitive” marketplace as Amazon’s use of its own network caused rivals to fight harder for business.