The rise of ecommerce and the increased demand for parcels has radically changed the parcel market, attracting new entrants, including large retailers venturing into self delivery. These changes have not only increased the competition in the parcel market, but have also changed the dynamics within the market — so much so that the relationship between the players has been turned on its head. With these thoughts in mind, the U.S. Postal Service Office of Inspector General (OIG) asked Professor John Panzar to investigate.
Professor Panzar shows that large parcel delivery companies are threatened by more than competition amongst each other — their real battle is over package volumes under the threat of self-delivery by large retailers … (click to read report)