Business deserts Post Office in the UK
Small businesses are ready to desert Royal Mail and switch to private sector delivery rivals after counting the cost of the damaging postal dispute, a survey shows.
More than half the small companies surveyed for the British Chambers of Commerce (BCC), say they are more likely to use alternative services to reduce the risk of further disruption to their business.
Rival mail services, the internet or a personal limited service for key customers are among the options they are exploring.
Royal Mail is braced for a backlash from dissatisfied customers, but is banking on higher rates charged by rivals to prove a deterrent for business customers to switch. The weekend BCC poll, based on replies from 183 members, showed 62pc of them have already started using alternative services to send and settle invoices, while 88pc have seen their businesses suffer from cash-flow problems and lost orders and other costs involved in meeting the cost of the strike.
Natalie Evans, head of policy at BCC, said the survey results hammered home the damage to Royal Mail and the loss of confidence among customers. “It will not be easy for Royal Mail to regain their confidence,” she said.
Royal Mail has seen business shrink even before the strike with the loss of 40pc of its bulk-mail business. Rivals TNT, Business Post and Deutsche Post have been working flat out during the strike to ensure they keep the new business.
