Deutsche Post’s Royal Mail deal first of many
Following the recent announcement that mail and express operator Business Post has agreed a deal with the UK’s Royal Mail to access its distribution network, Deutsche Post World Net has announced a similar agreement. The deals have come as a result of the liberalization of the UK postal market which has reduced the scope of the Royal Mail’s monopoly.
Earlier in the year DPWN acquired an independent UK operator, Speedmail, and won a long term license from the regulator, Postcomm. The agreement which has been struck means that Royal Mail will deliver business post which DPWN has collected and sorted. Following the deal DPWN also announced that it had won a major million pound plus contract with a financial services company.
The importance of the market to the company has been demonstrated by the relocation of Speedmail to new accommodation in London which will treble the amount of mail it can process from 2.5 million items per month to 7.5 million. The ambition of the company is to become the second largest postal operator in the UK in which rivals Business Post, TNT and Hays are also present.
DPWN’s effort to break into the UK market is part of a wider strategy to develop a European network which could even involve the acquisition of national postal operators. Preliminary talks have already been held with Austrian Post and senior figures at Deutsche Post believe that eventually there could be as few as six national operators in the enlarged 25 member EU.
