Royal Mail reveals it wants to change core service it offers across UK

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Royal Mail reveals it wants to change core service it offers across UK

Royal Mail wants to change the Universal Service Obligation, which requires it to deliver six days a week nationwide for one price.

The company announced this after posting losses of £ 180 million this spring and summer.

The operator said the losses showed that the universal service obligation had to end in its existing form, the Times reports.

Royal Mail agreed to the privatization requirement in 2013.

Keith Williams, Chairman of the Board of Directors, said, “While we have had exceptionally good results in terms of revenue and have seen real growth for the first time since privatization, the reduction in mail volume has been expected to have had a significant impact and shows that change is needed Universal service. “

The Company boasts that it is “the only company able to offer” One-Price-Go-Anywhere “service for a range of letters and parcels to more than 30 million addresses across the UK, six days a week. “

Politics is at the core of what business stands for – but it means that a person in the distance of Scotland pays the same price as a person in the middle of London, even if the letter is sent from London.

While this is a laudable model, Royal Mail believes it needs to be changed in order for the company to help balance the books.

The losses for the six months to the end of September were due to Royal Mail seeing a sharp 33 percent drop in mail volume – far worse than recent performance.

In contrast, Royal Mail saw parcel volumes grow by 31 percent over the same period.

The company is in the middle of a 150,000 job shedding program and layoffs cost the company £ 147 million.

For the first time in its history, there are more parcels than letters.

The company still hopes to break even by the end of March.

Including the international courier division, GLS, Royal Mail posted a pre-tax profit of GBP 37 million.

GLS, which ships across Europe and the United States, nearly doubled profits to £ 166 million as sales rose by more than a fifth.

The group said the growth in online shopping would result in UK revenues increasing by £ 380-580 million for the full year.

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