Australia Post confirmed it’s in talks with Amazon

Source: supplied.

Speculation that Amazon was in negotiations with Australia Post has been around since December and now an executive from the mail service has confirmed the organisation is indeed talking to the US ecommerce giant.

“We are talking to them now; we will continue to talk to them,” said Australia Post chief operating officer Bob Black, according to The Australian.

Australia Post already has a relationship with Alibaba through a memorandum of understanding expanded in February during the Chinese ecommerce company’s launch of its Melbourne office.

Black said he hoped something similar would be in place with Amazon soon.

“We hope to have something agreed in the next two months. Amazon is a significant inbound international customer for us already,” he told The Australian.

Australia Post declined to comment further on Amazon negotiations to Business Insider.

Black predicted that Amazon’s arrival would expand the size of the Australian business-to-consumer parcel market and that Australia Post had a 30% reduction in deliveries of “not at home” cards by introducing new methods of parcel pickup in the past year.

“These are the things Amazon is desperately keen to access,” he said.

Australia Post is about to lose its CEO, with Ahmed Fahour due to depart in July after his resignation in February brought on from prime minister Malcolm Turnbull’s criticism of his $5.6 million salary. No replacement has yet been announced.

The government-owned Australia Post harvested $131 million net profit for the half-year to December 31, 2016 – a considerable rise from the $16 million generated in the previous year, thanks to its domestic parcels business.