Japanese Yamato Transport to cancel deal with Lawson
Yamato Transport Co. has said that it will cancel three months later its parcel collection entrustment deal with major convenience store chain Lawson Inc. due to Lawson’s decision to do business with Japan Post.
In the past six months, Yamato held talks with Lawson, which has proposed handling parcels on behalf of both Yamato and Japan Post, a public corporation, Yamato officials said. But the negotiations broke down on Tuesday, the officials said.
Lawson announced Wednesday that it will start accepting in mid-November parcels at its convenience stores on behalf of Japan Post.
Yamato said that it rejected Lawson’s proposal out of concern that the quality of its parcel delivery service might deteriorate if the convenience store chain handles parcels both for Yamato and Japan Post.
The firm also said that it would be unable to compete with Japan Post on an equal footing since the public corporation enjoys tax breaks and other special benefits that are not allowed for private-sector companies such as Yamato.
