Ofcom is concerned that Royal Mail could potentially cross-subsidise its parcels operation through its letters business, as its market share and delivery network is much more established in the latter. The strength of its operation in the letters sector could give the carrier an unfair advantage in the parcels market, and Ofcom said it will “closely monitor whether Royal Mail is appropriately allocating its costs between parcels and letters”. The comments appeared in a report on Ofcom’s review into the postal […]
Royal Mail is to open 10 temporary parcel sorting sites between now and Christmas to sort a significant amount of its peak volumes.
Royal Mail has called for its regulator to protect it from last mile delivery competitors such as TNT Post, claiming that TNT’s expansion plans could cut £200m from its annual turnover.
UK Mail Group’s depot closure programme will cost it approximately £2m as it looks to continue to cut costs. In a pre-close trading update for the year ended 31 March, UK Mail says the closure of four depots in the past 12 months will leave it with a low-cost and integrated network. It is left with a network of 50 depots as a result. The parcels giant also reveals a Q4 revenue increase of 14% year-on-year. However, when adjusting for […]