More competition for Royal Mail
Royal Mail is watching with interest as other postal providers begin to trial E2E (end-to-end) delivery services in a few selected areas across London. The most recent trial has been undertaken by TNT Post and is covering a modest area seen as one of the more profitable.
Royal Mail's concern is that if successful, the trial may be duplicated and will then threaten the Universal Services it is committed to providing, that is delivery to every location six days per week.
The TNT Post trial has highlighted that Royal Mail's competitors could cherry-pick the most profitable delivery areas, prompting Ofcom to keep a close eye on developments.
Although Royal Mail says it is not adverse to competition, it is obviously cautious about the latest goings on and would like to see regulation of other providers to protect the Universal Service. Ciconi will be watching with interest.