UK Royal Mail’s market share being eroded

Royal Mail’s monopoly of the postal market is starting to be eroded, as rival mail companies poach the group’s biggest business customers. TNT Mail, owned by the Dutch post office, said yesterday it had won contracts to handle mail for several high-profile corporate clients, including Sky. The company said that it was handling nearly 1m items of post every week. Business Post, owned by UK Mail, has been operating in the UK since early last year and boasts clients such as Powergen, while DHL Global Mail, part of Deutsche Post, will launch its own UK business at the end of this month. Andy Barrett, head of marketing at DHL Global Mail UK, said the group had signed contracts with two large business customers. Although private sector competition to Royal Mail is growing rapidly, the state-owned group is expected to retain its market dominance for many years.

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