May 19, 2020

Amazon agrees $600mn deal with Britain

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Amazon agrees $600mn deal with Britain

The Seattle-based company, Amazon, has agreed a £600mn deal with Britain’s public sector procurement market, The Telegraph reports.

As part of the deal, the American giants will provide a one-stop shop for public bodies across Yorkshire in England where the organisations can buy a diverse range of products to help them operate.

The deal will provide public bodies with products ranging from office supplies to medical equipment and is anticipated to operate through the Amazon’s new business division.

The firm signed a five-year deal with Yorkshire Purchasing Organisation (YPO), which helps reduce the cost of goods by arranging mass deals with suppliers.

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“Having revolutionised consumers’ retail habits, Amazon’s next step may be to do the same for public sector purchasing,” said Gus Tugendhat from data company Tussell.

This is the first agreement of its kind that Amazon has committed to in the UK, however, does take part in similar arrangements in the US.

In 2017, it was agreed that Amazon would supply parts of the public sector through acquiring organisation US Communities.

Having first created its Amazon Business Division in April 2017, the company maintains the aspiration of targeting the multi-billion pound business-to-business market.

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