This week Royal Mail once again warned that competition from other carriers is likely to hurt its growth prospects. This time it believes the threat comes from Amazon Logistics, the online retailer’s own delivery network, but back in June it also called for its regulator to protect it from other competitors such as Whistl- formerly TNT Post.
But the boss of Transline Logistics, the logistics arm launched by driver recruitment firm Transline Group last year, argued that competition in any sector, not just post and parcel delivery, is “invigorating not stifling”.
Joint CEO Jon Taylor said: “It was only a matter of time before challengers to Royal Mail saw a gap to launch their own cost-effective delivery services and capitalise on the need for more options.
“For those organisations that rely heavily on third-party delivery services, a competitive market place lets them explore the option of setting up their own internal network – a more feasible and cost-effective way of still delivering the same quality service to customers.”
Taylor pointed to the technology and finance sectors as an example of where competition is making the traditional players “up their game”.
“We operate in a world where disruption is applauded and encouraged," he added.
The parcel delivery industry is eagerly awaiting the outcome of an inquiry into competition in the sector, which was launched by the Business, Innovation and Skills Committee in September. Royal Mail chief executive Moya Greene, Whistl chief executive Nick Wells and UK Mail chief executive Guy Buswell are all expected to give evidence to the committee later this month.