Deutsche Post targets Royal Mail markets
Deutsche Post Global Mail has set itself to become number two in the UK postal market. “We want to be the alternative to Royal Mail, ” said Michael Proffitt, MD of Europe and the UK for DPGM’s Mail International division. Building on its takeover of Speedmail this year and the award of a long-term license, DPGM has opened a purposebuilt 7,500sq meter mail centre in Croydon, with a capacity of 90m items a year, and has negotiated a downstream access agreement for Royal Mail to handle final delivery. Under the terms of its license from regulator Postcomm, DPGM (UK) will offer businesses mailing more than 4,000 pre-sorted letters a day a two-day delivery service from this August. The rates DPGM (UK) has requested under its access agreement for 2004/05 are 13p for pre-sorted letters to each of Royal Mail’s 1,450 delivery offices and 13.375p for letters to each of RM’s 121 postcode areas. For domestic bulk business mail, DPGM (UK) will pick it up and transport it through the DHLUK truck network for delivery to 71 Royal Mail sorting centers for onward final delivery. International mail will pass through Croydon for onward transport on DHL’s global network and on contracted commercial airlines. Some 20% of DPGM’s mail in Europe is handled through London. The Speedmail operation, which has been delivering 12m items a year in 22 London postcodes, will be rolled out as a city mail service in locations such as Birmingham, Manchester and Glasgow. In another move, from June, DPGM is taking over the mail room operator of an undisclosed financial institution which sends out 140,000 items a year. Business Post has launched Letter Express, a premium mail product offering delivery by 9am in competition with Royal Mail’s Special Delivery. Letter Express is based on a 100g pack, supplied free to users. It covers 90% of the UK population by 9am, with outlying areas receiving a 10.30 delivery. This price undercuts Royal Mail at £6.79 compared with £6.95, and comes with track and trace and proof of delivery. Customers can obtain PODs by text message to their mobile phone, by automated e-mail or by accessing Business Post’s website.
