UK Mail bullish over business post gains

UK Mail predicts it will be handling nearly half a million business letters a day by the end of next month, as new customers join existing clients PowerGen and mobile phone network Singlepoint in switching their services to the private postal operator.

The company, which claims it will generate up to GBP15m worth of revenues this year from a standing start two months ago, revealed it had secured the PowerGen business this week. It is expected to handle up to 35 million items for the utility giant, mainly bills and marketing literature. UK Mail is also understood to be working for Singlepoint, which was bought by Vodafone last year, although it declined to confirm the appointment. In addition, the postal operator is believed to be targeting government agencies.

PowerGen customer services director John Gunter says: “We are always looking for ways to improve our service to customers and, with UK Mail, benefits have included our ability to send more correspondence to customers with a guaranteed two-day delivery.”

Royal Mail handles more than 80 million letters a day, over 80 per cent of which are from business customers.

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