Evaluate, using evidence from the stimulus material, the extent to which the UK parcel delivery market can be considered to be an oligopoly.
| Operator | Market Share (%) |
|---|---|
| Royal Mail / Parcelforce | 31% |
| Evri | 23% |
| DPD Group | 19% |
| DHL | 12% |
| Yodel | 7% |
| FedEx | 4% |
| Others | 4% |
According to an industry analysis by Ofcom, "The UK’s parcel delivery sector is dominated by a small cohort of major carriers who have established deep logistics networks, nationwide sorting hubs, and extensive fleet infrastructure. To protect their operating margins, these giant couriers avoid aggressive price-cutting on standard residential deliveries. Instead, they focus on intensive non-price competition, such as offering precise 1-hour delivery windows, integrating smart-app tracking, and securing exclusive collection partnerships with major e-commerce platforms (like Amazon or eBay). Smaller, regional couriers struggle to compete due to the massive sunk costs of establishing nationwide sorting hubs and automated tracking technology, leaving them to serve low-margin, localized routes."
42 exam-style questions on OCR A Level Economics Market structures, covering Perfect competition, Monopoly, Monopolistic competition, Oligopoly, and Contestable markets. Each one has a worked solution and a mark scheme showing where the marks go.